Stakeholder and Issue Analysis

Question 1

Stakeholder engagement

Answer 1

efforts by corporation to
understand and involve relevant individuals, groups, or
organizations by considering their moral concerns

Question 2

Issue analysis

Answer 2

effort to understand the source, nature,
and extent of a question or matter in dispute facing
corporation

Question 3

Corporations can increase understanding of stakeholders 1-2

Answer 3

Who are our stakeholders?
What are their stakes

Question 4

Corporations can increase understanding of stakeholders 3-4

Answer 4

What opportunities and challenges are presented to our firm?
What responsibilities does our firm have to all its stakeholders?

Question 5

Corporations can increase understanding of stakeholders 5.

Answer 5

What strategies or actions should our firm use deal with
stakeholder challenges and opportunities

Question 6

Stakeholder management capability

Answer 6

Identify stakeholders and their influence
➢ Develop the organizational practices to understand
stakeholders
➢ Undertake direct contact with stakeholders

Question 7

Matrix mapping →

Answer 7

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

Question 8

Matrix Mapping allows managers to

Answer 8

Assess power of stakeholders to achieve their demands
Whether they have means or resources to influence
x-axis: oppose, support
y-axis: stakeholder importance

Question 9

Problematic stakeholders

Answer 9

those who would oppose the
organization’s course of action and are relatively unimportant to
the organization

Question 10

Low priority stakeholders

Answer 10

those who support the organization’s
course of action and are relatively unimportant to the
organization

Question 10

Antagonistic stakeholders

Answer 10

those who would oppose or be
hostile to the organization’s course of action and are very
important to the organization

Question 11

Supporter stakeholders

Answer 11

those who would support the
organization’s course of action and are important to the
organization

Question 12

Stakeholders can be classified into four types

Answer 12

➢ 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

Question 13

Stakeholder management process:

Answer 13

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

Question 14

Salience

Answer 14

degree to which managers give priority to
competing stakeholder claims

Question 15

Stakeholder identification and salience based upon
stakeholder possession of one or more of three attribute

Answer 15

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

Question 16

Classes of stakeholders:

Answer 16

Dormant, discretionary, or demanding stakeholders
b) Dominant, dangerous or dependence stakeholders
c)
Definitive stakeholders

Question 17

Frooman (1999) → how do stakeholders try to act to
influence the organization’s decision making / behaviour

Answer 17

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

Question 18

Two general means of control over an organization

Answer 18

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

Question 19

Influence pathway →

Answer 19

where withholding and usage strategies
could be used by an ally of the stakeholder with whom the
organization has a resource dependence

Question 20

Four influence strategy possibilities

Answer 20

Indirect / usage
2. Indirect / withholding
3. Direct / withholding
4. Direct / usage

Question 21

Collaboration

Answer 21

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)

Question 22

FOSTERing relationships

Answer 22

framework for organizations to develop
collaborative stakeholder relationships
* Involves six steps:
➢ Creating a foundation
➢ Organizational alignment
➢ Strategy development
➢ Trust building
➢ Evaluation
➢ Repeat the process

Question 23

Two approaches to issue analysis

Answer 23

The issues management process
Issue salience (materiality) analysis

Question 24

The Issue Management
Process

Answer 24

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

Question 25

Issue materiality (sustainability materiality)

Answer 25

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

Question 26

Issues are plotted and ranked in decreasing order of
importance

Answer 26

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