Week 2 readings Flashcards
Defining priorities done by 3 broad actions
- Map the value chain to identify impact areas
- Select indicators and collect data
- Define priorities
Mapping the value chain (3 important steps)
- broad perspective
- prioritize stakeholders
- look at stakeholders that don’t have a voice
Logic model for collecting data (5 criteria)
- Inputs: what resources go in that could positively or negatively affect the SDG?
- Activities: what activities are undertaken
- Outputs: what is generated through those activities?
- Outcomes: what changes in the target population occurred?
- Impacts: what are the changes as a result of those outputs?
Define priorities (2 steps that need to be transparent)
- Consider the magnitude, severity, and likelihood of current and potential negative impacts, the importance of such impacts to key stakeholders and the opportunity to strengthen competitiveness through resource efficiency.
- Assess the opportunity for your company to grow or gain advantage from its current or potential positive impacts across the SDGs. This may include opportunities to innovate, develop new products and solutions or target new market segments.
Most important internal drivers
- Leadership
- Business case
Most important external drivers
- Reputation
- Customer demand and expectations
- Regulation and legislation
Soft issues
Mental models
External perspective on a company
Black boxes
Internal perspective on company
Isolated island
Responsibility assumption
stakeholder engagement is a sign of corporate responsibility.
Rawlisan form of stakeholder engagement
mutually beneficial and just scheme of cooperation
Stakeholder engagement has the potential to be immoral or either moral.
A merger between the justness of the process (procedural justice) and the justness of the outcome (distributive justice) may occur. The process can be depicted as largely morally neutral or unaligned as the actors only care on outcome.
2 fundamental normative stakeholder questions
- Who is the legitimate stakeholder and what makes them such?
- How the company balances inevitable conflicts between stakeholder claims.
2 models for indentifying legitimate stakeholders
- Narrow (vital for the company) and broad (any group affected by the company)
- Moral or strategic
Corporate irresponsibility
occurs when the strategic management of stakeholders does not remain responsibility-neutral practice but becomes an immoral practice based on the deception and manipulation of stakeholders.
4 types of dependence relationships between firms and stakeholders (Frooman):
- Low interdependence relationship indirect withholding strategy by the stakeholder
- High interdependence relationship direct usage strategy by the stakeholder
- Firm has the power indirect usage strategy by the stakeholder
- Stakeholder has the power direct withholding strategy by the stakeholder
NGO strategies (2)
Symbolic damage
Symbolic gain
2 aims of NGO influence
- To deinstitutionalize unwanted corporate norms and practices.
- To re-institutionalize preferred alternative norms and practices.
Reformative NGO
use symbolic gain strategies (positive publicity) and material gain strategies (buycott)
Radical NGO
use symbolic damage strategies (negative publicity) and material damage strategies (boycott)
Radical flank effect
how the existence of radicals makes moderate groups in a social movement more attractive negotiating partners to the movement opponents
5 main propositions on NGO strategies
Proposition 1: An effective symbolic gain NGO strategy will induce reinstitutionalization of corporate practices.
Proposition 2: An effective symbolic damage NGO strategy will induce de- and reinstitutionalization of corporate practices.
Proposition 3: When conducted simultaneously toward the same company and/or sector of industry, contrasting NGO strategies will interplay (radical flank effect)
Proposition 4: an effective symbolic gain and symbolic damage strategy will reinforce each other in creating institutional change: the symbolic damage NGO strategy will deinstitutionalize the status quo and provide the company/sector with an incentive for reinstitutionalization, while the symbolic gain NGO strategy will guide the process of reinstitutionalization.
Proposition 5: the resource dependence relationship between NGO and target company influences the NGO strategy, and the NGO strategy influences the character of the resource dependence relationship.
