Write a reflection of the chapter

Write a reflection of the chapter

Chapter 2 – Strategic Management of
Stakeholder Relationships
Stakeholders
Any individual or group who can affect or is
affected by the actions, decisions, policies,
practices, or goals of the organization.
Those with a stake, or claim, in some
aspect of a company’s products,
operations, markets, industry, or
outcomes
http://www.starbucks.com/responsibility/sourcing
Key Responsibilities To Stakeholders
▪ Economic
▪ Legal
▪ Ethical
▪ Philanthropic
Stakeholders
Stockholders
Customers
Employees
Community
Competitors
Business Stakeholder Groups
Special-Interest
Groups
Suppliers
Society
General
Public
Media
Stakeholders
Primary stakeholders
• Have a direct stake in the organization and
its success.
Secondary stakeholders
• Have a public or special interest stake in the
organization that is more indirect.

Social Stakeholders
Primary Social Stakeholders
Secondary Social Stakeholders
Shareholders and investors
Government regulators
Employees and managers
Civic institutions
Customers
Social pressure groups
Local communities
Media and academic
commentators
Suppliers and other business
partners
Trade bodies
Competitors
Nonsocial Stakeholders
Primary nonsocial
stakeholders
Secondary nonsocial
stakeholders
Natural environment
Environmental interest
groups
Future generations
Animal welfare
organizations
Nonhuman species
Opportunities & Challenges With Stakeholder
Relationships
Opportunities
• Build productive working
relationships with stakeholders
• The potential for cooperation
Challenges
• Representative of how the firm
handles its stakeholders
• The potential for threat
Stakeholder Orientation
• There is a two-way relationship between the firm
and a number of stakeholders.
– Customers
– Communities
– Employees
– Trade associations
– Suppliers
– Government/political groups
– Investors
Stakeholder Attributes
• Power
– Extent to which coercive, utilitarian, or symbolic
means can be used to impose a stakeholder’s views
upon an organization
• Legitimacy
– Perception or belief that a stakeholder’s actions
are proper, desirable, or appropriate
• Urgency
– Pressure that a stakeholder exerts on managers and
organizations by stressing the urgency of its claims
Reputation Management
• Process of building and sustaining
a company’s good name and generating
positive feedback from stakeholders.
• Most reputations take a long time to build or
change.
• Not handling a crisis situation to the
satisfaction of stakeholders can damage a
firm’s reputation.


Reputation Management
Crisis Management
Crisis Management – “To truly understand the character of a corporation, watch how they behave during
a crisis.” SEC Chair

• Process of handling a high-impact
event characterized by ambiguity
and the need for swift action
– Threat to company goals
– Short response time
– Stressful, emotional, uncertain,
and demanding context
– Close organizational scrutiny by employees,
stakeholders, customers, government regulators, the
media, competitors, and creditors
Development of
Stakeholder Relationships
• Relationships are founded on principles of:
– Trust
– Commitment
– Communication
• They are also associated with a degree of:
– Time
– Interaction
– Shared expectations
• Companies are searching for ways to develop long-term
and collaborative relationships with their customers and
business partners.
Implementing a Stakeholder Perspective
1. Assessing the corporate culture
2. Identifying stakeholder groups
3. Identifying stakeholder issues
4. Assessing the organization’s commitment to
social responsibility
5. Identifying resources and determining
urgency
6. Gaining stakeholder feedback