Organizational and Manageial Communication

1. Organizational and Manageial Communication Stakeholder Management Chapter 6

2. Stakeholder • Any group or individual who can affect or is affected by the achievement of an organization’s purpose. • They have a ‘stake’ in the organization. • Encompasses a broad range of groups and individuals, some with little impact, some with great impact. Edward R. Freeman, 1984, Strategic Management: A Stakeholder Approach, Marshfield, MA:Pitman. Peggy Simcic Brønn

3. Identifying Organization’s Linkages to Stakeholders • Who are organization’s stakeholders? • No general group, but identified by common problem • Vary from case to case • Dependent on what organization does and how other individuals and organizations react to organization’s behavior • Key: What consequences of organization’s activities will have on its stakeholders and how do these consequences affect each other?

4. A Stakeholder Map

5. Specific Stakeholders of a Large Organization OwnersFinancial CommunityActivist Groups Shareowners Analysts Safety and Health Groups Bondholders Investment Banks Environmental Groups Employees Commercial Banks’ Big Business’ Groups National Banks Single Issue Groups SuppliersGovernmentPolitical Groups Firm #1 Congress/Parliament Political Party #1 Firm #2 Courts Political Party #2 Firm #3 Cabinet/Departments National League of Cities Etc. Agency #1 National Council of Mayors Agency #2 Etc. CustomersCustomer Advocate GroupsUnions Segment #1 Consumers’ Union Union of Workers #1 Segment #2 Council of Consumers Union of Workers #2 Etc. Attac Political Action Committees of Unions EmployeesTrade AssociationsCompetitors Segment #1 Business Roundtable Domestic Competitor #1 Segment #2 Customer Trade Org. #1 Domestic Competitor #2 Etc. Etc. Foreign Competitor #1 Peggy Simcic Brønn

6. Stakes of Selected Stakeholders Customer Segment #1Political Parties #1 and #2 High Users of Product High Users of Product Improvement of Product Able to Influence Regulatory Process Able to Get Media Attention on a National Scale Customer Segment #2Consumer Advocate #1 Low Users of Product Effects of XYZ on the Elderly No Available Substitute EmployeesConsumer Advocate #2 Jobs and Job Security Safety of XYZ’s Products Pension Benefits Owners Growth and Income Stability of Stock Price and Dividends Peggy Simcic Brønn

7. Examples of Indirect or Coalition Strategies

8. Classical Stakeholder Grid Peggy Simcic Brønn

9. ’Real World’ Stakeholder Grid Peggy Simcic Brønn

10. Strategic planning including stakeholders Peggy Simcic Brønn

11. The ’Stakeholder Dilemma’ Game Peggy Simcic Brønn

12. Stockholders Government Regulators Boards of Director Community Leaders Method for Mapping Linkages of an Organization (Grunig and Hunt, 1984) ENABLING Employees Unions Suppliers INPUT Associations Political Groups Professional Societies NORMATIVE LINKAGES FUNCTIONAL LINKAGES Organization Consumers Industrial Purchasers Users of Service OUTPUT DIFFUSED Environmentalists Community Residents Voters Media Minorities Women Other Publics

13. Four Key Linkages • Enabling Linkages • Functional Linkages • Input linkages • Output linkages • Normative Linkages • Diffused Linkages Peggy Simcic Brønn

14. Functional Linkage • Linkage that give input and take output • Input Linkage • Employees • Unions • Suppliers • Output Linkages • Customers • Other organizations • Individual consumers Peggy Simcic Brønn

15. Enabling Linkage • Organization could not exist without this linkage • Authorities • Shareholders • Legal System Peggy Simcic Brønn

16. Diffused Linkage • Elements in society that are not clearly identified as a formal member of organization • Environmentalists • Community Residents • Media • Other Publics Peggy Simcic Brønn

17. Normative Linkage • Organizations that have common problems or similar values • Membership organizations • Professional groups • Associations Peggy Simcic Brønn