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Central Definitions

Individuals and groups with a multitude of interests, expectations, and demands as to what business should provide to society. An individual who possesses a stake in a particular business. Stakeholders. Stakeholder. Central Definitions. An Interest. A Right. Ownership.

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Central Definitions

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  1. Individuals and groups with a multitude of interests, expectations, and demands as to what business should provide to society An individual who possesses a stakein a particular business Stakeholders Stakeholder Central Definitions

  2. An Interest A Right Ownership Origins of the Stakeholder Concept Stake An interest or a share in an undertaking and can be categorized as: Legal Right Moral Right

  3. Who Are Business Stakeholders?

  4. Who Are Our Stakeholders?

  5. views stakeholders primarily as factors managers should manage in pursuit of shareholder profits Strategic Approach views stakeholders as a group to which management has a fiduciary responsibility MultifiduciaryApproach considers stakeholders as a group to whom management owes anethical, but not a fiduciary responsibility Stakeholder SynthesisApproach Strategic, Multifiduciary, and Synthesis Views

  6. Have a direct stake in the organization and its success PrimaryStakeholders Have a public or special interest stake in the organization SecondaryStakeholders Classifying Stakeholders

  7. Core (primary) stakeholders are essential to the survival of the firm • Strategic stakeholders are vital to the organization and the threats and opportunities the organization faces • Secondary stakeholders are all others in the organization's environment Classifying Stakeholders Core, Strategic, and Secondary Stakeholders

  8. refers to the perceived validity of the stakeholder’s claim to a stake Legitimacy refers to the ability or capacity of a stakeholder to produce an effect Power refers to the degree to which the stakeholder’s claim demands immediate attention Urgency Evaluating Stakeholders

  9. Key Questions In Stakeholder Management • Who are our stakeholders? • What are our stakeholders’ stakes? • What opportunities and challenges do our stakeholders present to the firm? • What economic, legal, ethical, and philanthropic responsibilities does the firm have to stakeholders? • What strategies or actions should our firm take to best address stakeholder challenges and opportunities?

  10. http://www.themanager.org/resources/Stakeholder%20Management.htmhttp://www.themanager.org/resources/Stakeholder%20Management.htm @ What Are Our Stakeholders’ Stakes? • Identify the nature/legitimacy of a group’s stakes • Identify the power of a group’s stakes • Identify specific groups within a generic group

  11. Stakeholder Mapping – Primary Concerns

  12. Stakeholder Mapping – Table Form

  13. What Opportunities and ChallengesDo Stakeholders Present? • Opportunities are to build good productive working relationships with the stakeholders • The potential for cooperation • Challenges (including litigation, strikes, boycotts,) stem from how the firm handles the stakeholders • The potential for threat

  14. What Opportunities and ChallengesDo Stakeholders Present?

  15. Stakeholder’s Potential for Threat to Organization High Low Stakeholder Type Mixed Blessing Strategy:Collaborate Stakeholder Type Supportive Strategy:Involve ? High Stakeholder’sPotential forCooperation with Organization Stakeholder Type  Nonsupportive Strategy:Defend Stakeholder Type Marginal Strategy:Monitor Low Diagnostic Typology of Organizational Stakeholders

  16. What Strategies or Actions Should Firm Take? • Do we deal directly or indirectly with stakeholders? • Do we take the offense or the defense in dealing with stakeholders? • Do we accommodate, negotiate, manipulate or resist stakeholder overtures? • Do we employ a combination of the above strategies or pursue a singular course of action?

  17. Effective Stakeholder Management • Careful assessment of the five core questions: • Who are our stakeholders? • What are our stakeholders’ stakes? • What opportunities and challenges do our stakeholders present to the firm? • What economic, legal, ethical, and philanthropic responsibilities does the firm have to stakeholders? • What strategies or actions should our firm take to best address stakeholder challenges and opportunities?

  18. Stakeholder Management Activities • Acknowledge • Monitor • Listen • Communicate • Recognize • Engage • Acknowledge conflicts • Integrate/Avoid/Combat/Co-Opt

  19. Strategic Steps TowardSuccessful Stakeholder Management 1. Integrate stakeholder management into the firm’sgoverning philosophy. 2. Create a stakeholder monitoring system 3. Implement a stakeholder performance measurement and evaluation system.

  20. Survival/Profitability Avoided/reduced costs Continued acceptance and use Expanded recognition Key Indicators of Successful Stakeholder Management

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