B. Strategic Management of Stakeholder Relationship Flashcards
defined as a plan of action taken to achieve objectives.
Strategy
Three steps involved in strategy:
(1) Formulation
(2) Implementation
(3) Evaluation
is a process of creating a competitive advantage over its competitor and sustaining this advantage in the long term.
Strategic Management
Five steps for strategic management
(1) Establish goals
(2) Scan environment
(3) Formulation
(4) Implementation
(5) Evaluation
initially performed by creating and/or clarifying business vision/mission and identifying goals/objectives.
Establish goals
what the company envisions itself to be in the future or to become.
vision
describes what the company is all about, who they are, what and how they do things and for whom.
mission
desired outcomes of planning, broader than objectives.
goals
aimed targets that are needed to achieve goals.
objectives
perform thorough analysis and assessment of the internal and external environment of the company
scan environment
looks at the external opportunities and threats, given the dynamics of a particular industry.
external
looks at a company’s strength and weaknesses by assessing its resources.
internal
develops top level strategies that can be trickled down to the rest of the organization.
formulation
executes developed plans by providing detailed objectives and action plans
implementation
measures and assesses results and recommends changes for improvement if necessary
evaluation
are individuals or groups of people who can be affected by the activities engaged in by corporations in achieving their goals.
stakeholders
are shareholders (investors, owners, partners, or anyone who has a financial stake in the company), customers, employees, suppliers, and society (government, civil society, and institutions).
key stakeholders
this theory states that companies are responsible for generating reasonable profits for their stakeholders but should also be responsible for their stakeholders’ well-being.
Stakeholder Theory
starts within an organization when it embeds and aligns its CSR initiative as part of the company’s overall strategy.
Strategic CSR
It means that a company’s objectives, strategies, and core values take into consideration the impact its operations have on the stakeholders.
Strategic CSR
An effective CSR strategy entails performing the following steps:
(1) Identify the goals/objectives of the company
(2) Scan the environment
(3) Formulate CSR strategy
(4) Implement the CSR program
(5) Evaluate the program
looks at the vision, mission, resources, strength, and weaknesses of the company.
internal assessment
looks at the needs of the stakeholder, considering the given opportunities and threats that are in line with corporate goals and objectives.
external assessment
This step provides a foundation and aids in developing a strategic CSR program.
Scan the environment
Six Success Indicators
(1) Alignment of CSR with Business Strategy
(2) Leadership
(3) Employee engagement
(4) Collaboration
(5) Communication
(6) Value Creation
Focusing on particular objectives in consonance with corporate strategy will yield the best results: a growing and profitable business and satisfied stakeholders.
Alignment of CSR with Business Strategy
Passion most importantly - follow the lead of “management’s heart”. Authenticity is key. When you see the management’s heart is the one leading and when you keep the company’s best interest upfront - everything becomes natural, cohesive, and authentic.
Leadership
Through employee volunteerism, CSR can be strengthened. Companies pave the way for employees to engage in the program voluntarily and some provide incentives to employees who participate in these activities.
Employee engagement
CSR is operated in cooperation with various institutions to make it work effectively and efficiently.
Collaboration
True or False: The role of government in CSR is to ensure that the very essence of corporations is to provide for the common good which pertains to stakeholders
True
True or False: Civil society’s CSR role is to ensure that stakeholders serve as watchdogs in the monitoring and implementation of CSR.
True
True or False: Corporations must be aware of the impact of their activities on the public.
True
is needed to allow strategic CSR to come into fruition.
Synergy
True or False: Alliances or partnerships with government, civil society, business and all stakeholders are important sources of legitimacy.
True
By communicating the success of a company’s CSR initiatives, it would have an immediate effect on strengthening buy-in within the company and encourage participants to perform better. Informing various stakeholders on success stories will increase public trust and legitimacy.
Communication
The ultimate goal of business is to create sustainable value for its stakeholders. Companies must be aware of how they operate in today’s volatile and uncertain environment and how they eventually affect our daily lives.
Value Creation
