Chapter 4-Stakeholder and Issue Analysis

Question 1

the process an organization uses to manage relationships with its stakeholder groups involves three levels:

Answer 1

1.- identifying the organization’s stakeholders and their perceived stakes according to the rational perspective;
2.- determining the organizational processes used to manage relationships with stakeholders and fitting these processes with the stakeholder map of the organization;
3.- understanding the set of transactions or bargains between the organization and
its stakeholders and deciding whether these negotiations fit the map and the processes.

Question 2

stakeholder management capability

Answer 2

as the ability of managers to identify stakeholders and their influence, to develop the organizational practices to understand stakeholders, and to undertake direct contact with stakeholders.

Question 3

Stakeholder Matrix Mapping

Answer 3

a technique of categorizing an organization’s stakeholders by their influence according to t,vo variables, and usually involves plotting them on a two-by-t,vo matrix.

Question 4

Stakeholder Identification and Salience

Answer 4

• Salience is the degree to which managers give priority to competing stakeholder claims.

• Power is exercising a relationship among social actors in which one social actor, A, can get another social actor, B, to do
something that B would not otherwise do. Power can be based upon force or threat, incentives, or symbolic influences.
• Legitimacy is a generalized perception or assumption that the actions of an entity are desirable, proper, or appropriate
within some socially constructed system of norms, values, beliefs, and definitions that is based on the individual, the organization, or society.
• Urgency is the degree to which the stakeholder’s claim or relationship calls for immediate attention, and exists when
a claim or relationship is of a time-sensitive nanJre and when that claim or relationship is important or critical to the
stakeholder.

Question 5

Stakeholder Influence Strategies

Answer 5

-Resource dependence exists when a stakeholder is supplying a resource and
can exert some form of control over it.

• Withholding strategies are those where the stakeholder discontinues providing a resource to an organization with the intention of changing a certain behaviour.
• influence pa thway occurs where withholding and usage strategies could be performed by an ally of the stakeholder with whom the organization has a resource dependence.

-Usage stra tegies are those in which the stakeholder continues to supply a resource but specifies how it will be used-that is, it attaches conditions to the use of the resource. Both strategies could be credible
threats to an organization.

Question 6

Stakeholder Collaboration

Answer 6

Collaboration is a meta-capability to establish and maintain relationships that allows the organization to tap into a powerful source of creative energy, a large pool of innovative ideas,
and a wider network. 16 The goal is to increase the organization’s environmental stability and to enhance control over
changing circumstances.

Question 7

The Issues Management Process

Answer 7

I. Identification of issues

2. Analysis of issues
3. Ranking or prioritizing of issues
4. Formulating issue response
5. Implementing issue response
6. Monitoring and evaluating issue response

Question 8

Issue Salience Analysis

Answer 8

The importance of issues to stakeholders would be measured by surveys, media monitoring, NGO activities, government
regulation or other action. The importance of issues to the corporation would be measured by internal interviews, employee
feedback, management discussions, and Board attention.