Stakeholder dialogue and organisational learning: changing relationships between companies and NGOs Jon Burchell and Joanne Cook n This article presents a critical examination of the process of stakeholder dialogue in the Corporate Social Responsibility (CSR) field. It utilises data from a three-year research project into stakeholder dialogue processes to discuss three central themes: first, what is meant by the term ‘dialogue’, both from a theoretical perspective and from its practical application within CSR; second, the challenges of creating effective dialogue; and third, measuring and assessing the potential outcomes of dialogue. In providing a critical overview of these themes, the article examines the nature of organisational learning through stakeholder engagement and dialogue. It questions the motives behind engagement in dialogue and highlights some of the potential challenges for organisational learning posed by opting for a stakeholder dialogue approach. It argues that organisations engaging in stakeholder dialogue must have a clear understanding of the implications of undertaking a dialogue process and have a long-term perspective regarding the outcomes and learning likely to emerge from it. While stakeholder dialogue may produce significant results, it is argued, many of these may be difficult to quantify on a short-term basis. Introduction One of the primary transitions emerging from the increased emphasis upon the social and ethical responsibilities of companies has been the change in focus from shareholders to stakeholders (Donaldson & Preston 1995, Blair 1998). By successfully understanding and incorporating the diverse perspectives and concerns of stakeholders, it is argued, a company can avoid the risks of damaging publicity and potentially increase its ‘social capital’ as it gains greater respectability and credibility. 1 The transition towards a greater focus upon stakeholders has resulted in a broad range of engagement strategies being developed, stretching from increased dissemination of information through detailed reporting practices towards more interactive forms of stakeholder engagement (Burchell & Cook 2006). In particular, increased emphasis has been placed upon the concept of stakeholder dialogue. Payne & Calton (2002: 121) describe this transition in manager–stakeholder relations as going from ‘the need for unilateral managerial cognition and control to a perceived need by some for reciprocal engagement and new dialogic forms of collective cognition’. n Respectively: Lecturer in CSR and Sustainable Development, The Management School, University of Sheffield, UK; and Senior Research Fellow, Leeds Social Sciences Institute, University of Leeds, UK. r 2008 The Authors Journal compilation r 2008 Blackwell Publishing Ltd, 9600 Garsington Road, Oxford, OX4 2DQ, UK and 350 Main St, Malden, MA 02148, USA 35 Business Ethics: A European Review Volume 17 Number 1 January 2008