Chapter 2: Stakeholder and Issues Management Approaches2.1 Why Use a Stakeholder Management Approach for Business Ethics?- The stakeholder management approach is a response to the growth and complexity of contemporary corporations and the need to understand how they operate with their stakeholders and stockholders- If organizations want to be effective, they will pay attention to all and only those relationships that can affect or be affected by the achievement of the organization’s purposes. Stakeholder management not only in its theoretical form, but also as a practical method to analyze how companies deal with their stakeholders Use “stakeholder analysis” to identidy strategies, actions, and policy results of firms in their management of employees, competitors, the media, courts, and stockholders- The stakeholder management approach provides an analytical method for determining how various constituencies affect and are affected by business activities. - The stakeholder approach also provides a means for assessing the power, legitimacy and moral responsibility of managers’ strategies in terms of how they meet the needs and obligations of stakeholders. 2.2 Stakeholder Management Approach Defined- A stake:is any interest, share or claim that a group or individual has in the outcome of a corporation’s policies, procedures or actions toward others. - A stakeholder: is “any individual or group who can affect or is affected by the action, decisions, policies, practices or goals of the organization.”- Primary stakeholders: owners, customers, employees, and suppliers. Also of primary importance to a firm’s survival are its stockholders and board of directors.- Secondary stakeholders: include all other interested groups, such as the media , consumers , lobbyists , courts , governments , competitors , the public, and society- The stakeholder management approach is based on an instrumental theory that argues “a subset of ethical principles (trust, trustworthiness and cooperativeness) can result in significant competitive advantage.” + Win – win outcomes + Winner – losers 2.3 How to Execute a Stakeholder Analysis Part of Stakeholder Management Approach is Stakeholder Analysis- The stakeholder analysis is a pragmatic way of identifying and understanding multiple (often competing) claims of many constituencies. - The stakeholder analysis is a method to help understand the relationships between an organization and the groups with which it must interact. - Each situation is different and therefore requires a map to guide strategy for an organization dealing with groups, some of whom may not be supportive of issues such as outsourcing jobs- The aim here is to familiarize you with the framework so that you can apply it in the classroom and in news events that appear in the press and in other media“Taking a Third-Party Objective Observer Perspective” – Understand others by wearing their shoes- It is recommended that you take the role of “third-party objective observer” when doing a stakeholder analysis.
- In this role, you will need to suspend your belief and value judgments in order to understand the strategies, motives, and actions of the different stakeholders.
- The point is to be able to see all sides of an issue and then objectively evaluate the claims, actions, and outcomes of all the parties
- Being more objective helps determine who acted responsibly, who won and who lost, and at what costs.
Seven steps of Stakeholder Analysis
1. Map Stakeholder relationships
1.1 Who are our current stakeholders?
1.2 Who are our potential stakeholders?
1.3 How does each stakeholder affect us?
1.4 How do we affect each stakeholder?
1.5 For each division and business, who are the stakeholders?
1.6 What assumptions does our current strategy make about each important stakeholder (at each level)?
1.7 What are the current “environmental variables” (inflation, GNP,…)that affect us and our stakeholders?
1.8 How do we measure each of these variables and their impact on us and our stakeholders?
1.9 How do we keep score with our stakeholders?
The first five questions in the figure offer a quick jumpstart on the analysis
Questions 6 through 9 may be used in later steps, when you assess the nature of each stakeholder’s interest and priorities.
While brainstorming about questions 1 through 5 with employees you have selected who are the most knowledgeable, current, and close to the sources of the issues at hand, you may want to draw a stakeholder map and fill in the blanks
2. Map Stakeholder coalitions
- After you identify and make a map of the stakeholders who are involved with your firm in the incident you are addressing, the next step is to determine and map any coalitions that have formed.
- Mapping actual and potential coalitions around issues can help you, as the CEO, anticipate and design strategic responses toward these groups before or after they form.
Stakeholder Map of a Large Corporation
3. Assess the nature of each Stakeholder’s interest
Four different types of stakeholders you face as a company:
“supportive,”
“nonsupportive,”
“mixed blessing,”
“marginal.”
The supportive and nonsupportive are with and against you.
The “mixed blessing” and “marginal,” you are less sure about their support for your strategy
Diagnostic Typology of Organizational Stakeholders
4. Assess the nature of each Stakeholder’s power
- This part of the analysis asks, “What’s in it for each stakeholder? Who stands to win, lose, or draw over certain stakes?”
- Eight types of power that different stakeholders exert and use for your analysis:
(1) Voting power: the ability of stakeholders to exert control through strength in numbers
(2) Political power: the ability to influence decision making processes and agendas of public and private organizations and institutions
(3) Economic power: the ability to influence by control over resources—monetary and physical
(4) Technoligical power: the ability to influence innovations and decisions through uses of technology
(5) Legal power: the ability to influence laws, policies, and procedures.
(6) Environmental power: the ability to impact nature
(7) Cultural power: the ability to influence values, norms, and habits of people and organizations
(8) Power over individuals: the ability to influence particular, targeted persons and groups through different forms of persuasion and groups
* Note that the power and influence is two way: toward its stakeholders, and each stakeholder toward on a given issue
5. Identify Stakeholder Ethics and moral responsibilities
- After you map stakeholder relationships and assess the nature of each stakeholder’s interest and power, the next step is to determine the responsibilities and moral obligations your company has to each stakeholder.
- A matrix of stakeholder responsibilities is shown in Figure 2.3.
Stakeholder Moral Responsibility Matrix
6. Develop specific strategies and tactics
Using your results from the preceding steps, you can now proceed to outline the specific strategies and tactics you wish to use with each stakeholder.
7. Monitor shifting coalitions
Because time and events can change the stakes and stakeholders, and their strategies, you need to monitor the evolution of the issues and actions of the stakeholders
-------------------------------------------------------------------
You have now completed the basic stakeholder analysis and should be able to proceed with strategy implementation in more realistic, thoughtful, interactive, and responsible ways.
The stakeholder approach should involve other decision makers inside and outside the focal organization.
Finally, the stakeholder analysis requires the principal stakeholders to define and fulfill their ethical obligations to the affected constituencies.
đang được dịch, vui lòng đợi..