Lecture3.2

Question 1

What is a stakeholder?

Answer 1

Definition: A stakeholder is any group or individual who can affect or is affected by the achievement of the organization’s objective.

Question 2

What is stakeholder management?

Answer 2

Definition: Stakeholder management is the process of managing relationships with stakeholders to create value for them while achieving the firm’s objectives.

Question 3

What are the key steps in stakeholder management?

Answer 3

• Identify stakeholders
• Map stakeholders
• Prioritize stakeholder interests
• Engage with stakeholders

Question 4

What are the criteria for identifying stakeholders?

Answer 4

• Dependencies: identify prospective Stakeholders directly/indirectly dependent on the firms activities/products/services/performance.
  On which stakeholders is the company dependent.
• Responsibility: Firm’s economic, legal, operational, or moral responsibilities towards stakeholders.
• Urgency: Asses what prospective stakeholders require immediate attention when concerning
  economic, social or environmental issues
• Influence: Stakeholders impacting firm’s strategy. Conclude what prospective stakeholders can impact the firm`s strategy or
  decision-making

Question 5

How to map stakeholders?

Answer 5

• List stakeholders
• Categorize them (e.g., internal (employees, shareholders) vs. external (p: NGO, suppliers, meda, customers, regulators, s: employees families, customers customer, suppliers supplier), primary vs. secondary)
• Visually organize a stakeholder map

Question 6

Why prioritize stakeholder interests?

Answer 6

• Helps focus attention effectively
• Different approaches exist, such as the Collaboration-Harm Grid Approach

Question 7

What is the Collaboration-Harm Grid Approach?

Answer 7

• Two dimensions: (high/low)
  
  1. Potential of Threat: Power, legitimacy, urgency
  2. Potential of Cooperation
     The assessment will be based on a simple “yes” or
     “no” answer, after which you can place the
     stakeholder into four categories:
     - Supportive
     - Marginal
     - Non-supportive
     - Mixed blessing stakeholders

Question 8

How to engage with stakeholders?

Answer 8

• Communicate: Transparency and honesty (factual information) in discussing issues
• Collaborate: Joint activities with stakeholders and monitor and create value

Question 9

Why is stakeholder engagement important?

Answer 9

• Stakeholder opinions on sustainability influence actions
• Firms must address complex sustainability issues strategically

Question 10

name examples for the four categories:
- Supportive
- Marginal
- Non-supportive
- Mixed blessing stakeholders

Answer 10

• Supportive:
  
  • Marginal:
  • Non-supportive: reduce level of dependence on them or find new ways to collaborate.
  • Mixed blessing: joint-venture merger,

Question 11

which action is required for the four categories:
- Supportive
- Marginal
- Non-supportive
- Mixed blessing stakeholders

Answer 11

• Supportive: involve
  
  • Marginal: monitor
  • Non-supportive: defend
  • Mixed blessing: collaborative