Stakeholder and Issue Analysis Flashcards
dIE
Stakeholder engagement
efforts by corporation to
understand and involve relevant individuals, groups, or
organizations by considering their moral concerns
Issue analysis
effort to understand the source, nature,
and extent of a question or matter in dispute facing
corporation
Corporations can increase understanding of stakeholders 1-2
Who are our stakeholders?
What are their stakes
Corporations can increase understanding of stakeholders 3-4
What opportunities and challenges are presented to our firm?
What responsibilities does our firm have to all its stakeholders?
Corporations can increase understanding of stakeholders 5.
What strategies or actions should our firm use deal with
stakeholder challenges and opportunities
Stakeholder management capability
Identify stakeholders and their influence
➢ Develop the organizational practices to understand
stakeholders
➢ Undertake direct contact with stakeholders
Matrix mapping →
technique of categorizing an
organization’s stakeholders by their influence according to
two variables and plotting them on a two-by-two matrix:
➢ Y Axis: Oppose or support corporation
➢ X Axis: Importance of stakeholders
Matrix Mapping allows managers to
Assess power of stakeholders to achieve their demands
Whether they have means or resources to influence
x-axis: oppose, support
y-axis: stakeholder importance
Problematic stakeholders
those who would oppose the
organization’s course of action and are relatively unimportant to
the organization
Low priority stakeholders
those who support the organization’s
course of action and are relatively unimportant to the
organization
Antagonistic stakeholders
those who would oppose or be
hostile to the organization’s course of action and are very
important to the organization
Supporter stakeholders
those who would support the
organization’s course of action and are important to the
organization
Stakeholders can be classified into four types
➢ Type 1: Supportive stakeholder and strategy
➢ Type 2: The marginal stakeholder and strategy
➢ Type 3: The non-supportive stakeholder and strategy
➢ Type 4: The mixed-blessing stakeholder and strategy
Stakeholder management process:
Identify key organizational stakeholders by considering factors
such as relative power, specific context and history of
relationship and specific issues
2. Diagnose stakeholders according to critical dimensions of
potential for threat or cooperation
3. Formula appropriate strategies to enhance or change current
relationships with key stakeholders
4. Implement strategies, attempting to transform the stakeholder
relationship from less favourable to a more favourable one
Salience
degree to which managers give priority to
competing stakeholder claims
Stakeholder identification and salience based upon
stakeholder possession of one or more of three attribute
Power → 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
➢ Legitimacy → Perception or assumption that actions of an entity
are are desirable, proper, or appropriate
➢ Urgency → degree to which stakeholder’s claim or relationship
calls for immediate attention
Classes of stakeholders:
Dormant, discretionary, or demanding stakeholders
b) Dominant, dangerous or dependence stakeholders
c)
Definitive stakeholders
Frooman (1999) → how do stakeholders try to act to
influence the organization’s decision making / behaviour
Resource dependence → exists when a stakeholder is supplying a
resource and can exert some form of control over it
Two general means of control over an organization
Withholding strategies → stakeholder discontinues providing a
resource with intention of changing a certain behaviour
➢ Usage strategies → stakeholder continues to supply resource but
specifies how it is to be used i.e. attaches conditions
Influence pathway →
where withholding and usage strategies
could be used by an ally of the stakeholder with whom the
organization has a resource dependence
Four influence strategy possibilities
Indirect / usage
2. Indirect / withholding
3. Direct / withholding
4. Direct / usage
Collaboration
establish and
maintain relationships that allows organization to tap into
powerful source of energy, ideas and wider network
➢ More integrated and company-wide
➢ Responsibility for stakeholder collaboration assigned to senior
executive(s)
FOSTERing relationships
framework for organizations to develop
collaborative stakeholder relationships
* Involves six steps:
➢ Creating a foundation
➢ Organizational alignment
➢ Strategy development
➢ Trust building
➢ Evaluation
➢ Repeat the process
Two approaches to issue analysis
The issues management process
Issue salience (materiality) analysis
The Issue Management
Process
- Identification of issues
- Analysis of issues
3.Ranking or prioritizing of issues - Formulating issue response
- Implementing issue response
- Monitoring and evaluating issue response
Issue materiality (sustainability materiality)
question or
matter that is sufficiently important to warrant
management’s attention
* An aspect or issue should be reported if it meets these
criteria:
➢ Reflects the organization’s significant economic, environmental,
and social impacts
➢ Substantively influence the assessments and decisions of
stakeholders
Issues are plotted and ranked in decreasing order of
importance
Priority issues for management would be upper right-hand corner
➢ Next priority would be issues located in the upper left and lower
right corners
➢ Their influence on operations and the ease or difficulty of
addressing the issues would be deciding factors for rating
➢ Issues in the lower left corner are of little importance to
stakeholders or management
