S5 - STAKEHOLDER MANAGEMENT Flashcards
STAKEHOLDER
- in organization or any group of individual
- They can affect or is affected by the achievement of ht organization’s objectives
FREEDMAN 2010
STAKE
- Interest ; Right (legal or moral) ; Ownership
- Different groups of S-H can have different stakes (some one type, some more than one)
STAKEHOLDER MANAGEMENT
- Handling stakeholder relationships
- Ensure their interests and expectations are considered in a company’s decisions and operations
- Effective SH M : improves decision-making and supports sustainable business practices
HOW TO IDENTIFY A STAKEHOLDER
- Through the actual or potential harm and benefit they experience, or anticipate experiencing, as a result of the firm’s actions or inaction
STAKEHOLDER MODEL
Represents all the agents of the firm :
- Employees, suppliers, investors, customers
- Government, neighbours, interest groups, political groups
2 TYPES OF CORPORATE STAKEHOLDER
- External (CSR)
- Internal (Corporate Governance)
EXTERNAL
- Business partners
- Competitions
- Government
- Industry
- Legal
- Customers
- Public relations “
INTERNAL
- Employees
- Investors
- Shareholders
PERCEIVED INFLUENCE OF VARIOUS STAKEHOLDERS
Stakeholders may have a different opinions when it comes to some topics. They also have different levels of influence when it comes to this.
STAKEHOLDERS AND CSR
in order to carry out large projects you need to persuade large numbers of people to understand the importance of what is being done in order to work together
BAKER 1962
DIRECT INFLUENTIAL STakeHolders
- The decisions that will be taken will have a direct influence for the firm
- The people who usually have this are : the employees, shareholders, government agencies
INDIRECT INFLUENTIAL STaKeHolders
- This means that it will affect the long-term strategic decisions though opinions and behaviors
- Can be done by customers, media, local communities
- Helps shaping public perception
CORPORATE GOVERNANCE
- Relationship of 2 set of stakeholders who make DIRECT investments in the form
- Power of decision making WITHIN the firm
- Management, capital, labour
CSR CORPORATE SOCIAL RESPONSABILITY
- Integrate social and environmental concerns into their operations
- Doing business ethically, sustainably
- Goes beyond profit making
VALUES OF S-H ENGAGEMENT
- Different for each stakeholder group
- Consider the cost for not engaging all stakeholders
Loss of assets, shareholder value, reputation, reduced staff morale, ppl leaving the org - Value to the organization
Assess costs of delays and budget overruns
Early warnings about events, communication from the stakeholders - Value to stakeholders
Getting the information they need, consulted, concerns addressed ?
SINGLE FIRM : SINGLE NGO
FOCUSED CONTRIBUTIONS
- Brand differentiation
- Focused, social impacts
- Respond to NGO activism
Both party can concentrate on a specific issue or project
Strong relationship
SINGLE FIRM : SINGLE NGO / Key considerations
- Limited Resource Requirements
- Protection of Intellectual Property
- Susceptible to personal influence
- Reputation risks
- PR focus Temptation
- Undue Influence Criticism
SINGLE FIRM : MULTI-NGO
DIFFUSED CONTRIBUTION
- Address multiple legitimacy threats
- Brand differentiations
- Access new markets
Diverse expertise : access to variety of skills and knowledge from all the NGOs
Broader impact :
SINGLE FIRM : MULTI-NGO / Key considerations
- Broader Goals met (partnering with multiple allows to address various social and environmental goals at once)
- Encourages Innovation
- Management Complexity (coordination, resource-intensive, need significant management skills and resources)
- Involvement and Responsibility (increased involvement in diverse issues = overcommitment and responsibility)
MULTI-FIRM : SINGLE NGO
“SHARED CONTRIBUTION
protection of industry legitimacy
Adress infrastructure voids
Unified approach : consistent vision and strategy
Rescue pooling : pool resource for common cause “
MULTI-FIRM : SINGLE NGO / Key considerations
- Overburdening : NGO become burden from managing multiple firm relationships
- Alignment of Goals : ensuring alignment of firms with NGO’s mission and objectives
MULTI-FIRM : MULTI-NGO
COMMUNAL CONTRIBUTION
- Address complex industrial threats
- Create industry consensus
- Dispersed impacts
Collective impact : large-scale change, resources and efforts
Innovation : encourages solutions with diverse perspectives “
MULTI-FIRM : MULTI-NGO / Key considerations
- Complex management : robust coordination and communication structures
- Conflict of interest : goals and priorities Among firms and NGOs
STAKEHOLDER MANAGEMENT PROCESS
A tool and technique :
- Organizational planning to ensure stakeholders needs are analyzed and can be met
- Communications planning to determine information needs and how to meet them in order to avoid wasting resources on unnecessary information or inappropriate technology
