1 / 18

What is stakeholder engagement?

Lecture Business Ethics N. 1. What is stakeholder engagement?. Can business be ethical? . Defining stakeholders:. … those groups who can affect or are affected by the achievement of an organization’s purpose. Freeman (1984).

dextra
Download Presentation

What is stakeholder engagement?

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Lecture Business Ethics N. 1 What is stakeholder engagement? Can business be ethical?

  2. Defining stakeholders: … those groups who can affect or are affected by the achievement of an organization’s purpose. Freeman (1984) Thus, when we discuss a firm’s interactions with the wider society, we can describe the relevant members of society as stakeholders. They are relevant for at least one of two reasons: they are affected by the firm’s activities they can affect the firm’s performance 2

  3. Stakeholder theory View of the firm based on neo-classical economics & critical Marxist view Shareholders (Investors) Suppliers FIRM Customers Employees Donaldson and Preston (1995) 3

  4. RIVAL view of the firm based on neo classical econ theory : traditional input-output model of a firm Shareholders (investors) Suppliers FIRM Customers Employees Donaldson and Preston (1995) 4

  5. Some typical stakeholder groups: customers suppliers employees shareholders government regulators consumer advocates environmental advocates competitors media 5

  6. What is Value ? What is value creation? “In management, business value is an informal term that includes all forms of value that determine the health and well-being of the firm in the long run. Business value expands concept of value of the firm beyond economic value (also known as economic profit, economic value added, and shareholder value) to include other forms of value such as employee value, customer value, supplier value, channel partner value, alliance partner value, managerial value, and societal value. Many of these forms of value are not directly measured in monetary terms.”

  7. Firm=embedded in a network of relationship • A critical part of the process of value creation is the quality of relationships that firms undertake with their stakeholders- i.e. Stakeholder engagement • E.g. Google, Ebay, Unilever, etc • In fact a firm is embedded in a network of relationships: “the corporation is constituted by the network of relationships which it is involved in with the employees, customers, suppliers, communities, businesses, and other groups who interact with and give meaning and definition to the corporation” (Wicks et al. 1994):

  8. What is stakeholder engagement? http://www.youtube.com/watch?v=VHGTsEwbOJY • “the process of exchanging information, listening to and learning from stakeholders with the goal of building understanding and trust on issues of mutual interest.” (SustainAbility, 2007) • “Stakeholder engagement is the systematic and proactive integration of feedback from a host of individuals and organizations who feel they have a stake in an organization’s operations.”(F500)

  9. From ignoring to partnering..

  10. From communication to effective collaboration...

  11. Evolution...

  12. How??

  13. Purposes....

  14. Possible drawbacks..

  15. Can stakeholder engagement be ethical then? • To be effective stakeholder engagement ought to be ethical – respecting the humanity and intrinsic value that each stakeholder has as a person (Noland, Phillips, 2010) • How? Effective stakeholder dialogues are good examples

  16. “What is stakeholder dialogue?“An integral part of a stepwise process of decision making. At different phases, involvement may take the form of sharing information, consulting, dialoguing, or deliberating on decisions”

  17. Stakeholder dialogues

  18. What is stakeholder dialogue: http://www.youtube.com/watch?v=B8Bly2kY0qg

More Related