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Today 1. Presentation 2. Break 3. Sustainable Fishing Case 4. Interactive Game

Today 1. Presentation 2. Break 3. Sustainable Fishing Case 4. Interactive Game. Session II Stakeholder Management. Stakeholder Management. Stakeholders. Definition any individual or group which affects or is affected by the organization Stakeholder management:

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Today 1. Presentation 2. Break 3. Sustainable Fishing Case 4. Interactive Game

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  1. Today1.Presentation2. Break3. Sustainable Fishing Case4. Interactive Game

  2. Session IIStakeholder Management

  3. Stakeholder Management

  4. Stakeholders Definition any individual or group which affects or is affected by the organization Stakeholder management: Balancing the competing preferences or claims of specific stakeholders (SH) Stakeholder saliency Power – how much can they influence the organization? Legitimacy – are their claims legitimate? actions appropriate? Urgency – do their claims require immediate attention? 4

  5. Stakeholder management 3 approaches Descriptive: legal requirement – "have to" deal with SH Instrumental / pragmatic: see SH as means to reach performance goals – "makes business sense" Normative: the morally right thing to do – "should" Tools Stakeholder mapping Issues and impact charts Priority table Influence grid 5

  6. External NGOs, communities, government, media, unions, banks,… External Value Chain Value chain Customers, suppliers Internal Internal Employees, managers, shareholders

  7. Typical stakeholder map Community Political groups Shareholders Government Financial institutions Special interest groups, NGOs Suppliers Customers Firm Competitors Unions Trade assns. Employees Consumer groups Media 7

  8. ESC Rennes' stakeholders Issues? Accrediting bodies Local government CCI National government ministries Financial institutions Prospects Suppliers Program Students Nationality Competitors ESCR Associations Alumni CGE - French bus. school assn. Internationalpartners Parents Admin. staff Faculty French feeder schools Media Management Companies Unions Employees French partner schools

  9. Stakeholder management5 key questions Who are our stakeholders? Stakeholder map 9

  10. Stakeholder management5 key questions • 2. Which SH are priority in terms of: • Legitimacy? • Power? • Urgency? 10

  11. Stakeholder management5 key questions 3. Which opportunities (potential cooperation) and threats (potential risks) do SH represent? 11

  12. Stakeholder management5 key questions • 4. What are our responsibilities towards SH? • Economic • Legal • Ethical • Philanthropic 12

  13. Stakeholder management5 key questions • 5. How to manage SH claims, relations? • Directly or indirectly, i.e., lobbying • Proactively or defensively • Negotiation strategy: win-win, competitive, accommodate, compromise • Formalize SH relations within the organization: centralized vs. decentralized 13

  14. Issues and impacts

  15. Priority table Score from 1 (least) to 5 (most)

  16. Influence Grid High Work together to achieve common goals Enhance their influence EMPOWER PARTNER Support Influence their thinking Track behavior and communications ENGAGE MONITOR Low Low High Influence

  17. Something fishyCase study • You are a purchasing manager for a multinational food company specializing in the sale of fresh tuna and frozen fish products. • You have sub-contracted fishing boats using nets which, in addition to catching tuna, ensnare and kill dolphins. • Your office regularly receives scientifically-valid reports from government and environmental protection agencies about the depletion of the world’s oceans. One of them, the Marine Stewardship council (Fr.) keeps a close eye on your company’s operations and offers a sustainable fishing label which you really haven’t investigated.

  18. Something fishyCase study • Some of your fishing boats have physical confrontations with Greenpeace which oppose excessive fishing and the mistreatment of dolphins. • In addition, the media (video)draw regular attention to the plight of dolphins ensnared in nets. • Some of your customers, like the Auchan hyper market chain, have already taken a position, and you’ve lost their business. What if other retailers follow suit?

  19. Something fishyCase study - your turn! • Work in small groups for 30 mn. to analyze this situation • Opportunities and risks • Which negotiation strategy / approach • Use SH map and influence grid tools • More specifically, which strategy to use in dealing with Greenpeace?  see video. Remember that Greenpeace is a large organization with its own issues. • Make recommendations • How specificallywouldyou manage SH relations? • Be ready to present your analysis and recommendations  Short PPT Click for video on Greenpeace warrior spirit

  20. Types of NGOs Company focused Direct opposition Greenpeace, Human Rights Watch Issue focused Solve specific environmental, economic, or social problems Care, Int’l. Red Cross Policy focused Lobby to shape opinion and legislation Amnesty Int’l., World Conservation Union

  21. Stakeholder Issue - Water The next battle

  22. Water issues • Conservation • Garric, Audrey (2012), Qui consommevraimentl’eau de la planète ? , Le Monde, accessed 2012 02 17 • Accessibility • Pollution • Privatization of water utilities • Argument for: efficiency, service, less corruption • Argument against: full-cost recovery, the nature of water (a public good – should be managed by the government)

  23. Privatization failures • Véolia and Suez Environment in Paris and Budapest • Suez Environment, U.S. • Coca Cola video: facts on water, 2007 partnership with WWF • Nestlé

  24. Coca Cola Bottling PlantKerala, India • $ 1 bn. invested in Indian business 1993-2004 • Problems • Used 510,000 liters of groundwater daily • Water table levels fell by 8 – 12 m • Kerala bottling plant • 2001-03 Campaign to close plant • 2004 court order closing plant

  25. Coca Cola Bottling PlantReaction, stakeholder issues • Reaction • Reduced water use by 24% in plants • Installed rainwater collection systems in 26 of their plans • Stakeholder partnerships of Coca Cola with • Water Stewardship Initiative* • WWF (partnership policies) • Attention paid to water footprint • See also Alliance for Water Stewardship

  26. Coca Cola Bottling PlantCommitments to: • Reduce • Recycle • Replenish • See WWF India's partnership policy

  27. NestléBottled water • Arguments against • Wastefulness: 3 l. water  1 l. bottled water • Transportation costs • Plastic bottles, recycling • Tap water is a free, healthy substitute • Arguments for: health • Toronto's ban on bottled water • See Story of Bottled Water video and city of Cleveland’s (SH) reaction

  28. NestléSH management • Ad campaign • Hired lobbyist to fight against municipal bans • Nestlé was accused of hiring a security firm to spy on NGO ATTAC in Switzerland and Colombia.

  29. Stakeholder managementKey points Map your stakeholders Prioritize claims and issues in terms of legitimacy, power, and urgency: Use the stakeholder influence grid to segment SH in terms of support and influence Scenario planning: Consider opportunities and risks Integrate these into company objectives and strategy 29

  30. Stakeholder managementKey points Develop internal SH management capability Generally speaking, be pro-active, take initiatives Determine negotiation strategy with respect to each SH: win-win, competitive, accommodation, negotiation, compromise. Formalize relations: communication strategy and tools For staff with frequent SH interactions Train them in key issues and negotiation approaches Involve them in strategic decisions 30

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