Csr 3 Stakeholder Engagement

7/29/2019 Csr 3 Stakeholder Engagement

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Stakeholder Management


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Questions to be addressed for

Stakeholder mgmt..

1. Who are our stakeholders?

2. What are their stakes?

3. What opportunities & challenges arepresented by them?

4. What CSR does the firm have towards

them?5. What strategies and actions would be best to

deal with these responsibilities?


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Who is a Stakeholder?

Any group or individual who affects or is

affected by the achievement of the

organization's purpose.


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ORGANIZATIONAL, ECONOMIC & SOCIETAL

STAKEHOLDERS

Employees Managerial Stakeholders Unions

Customers Creditors Distributors Suppliers

Communities

Govt. & Regulators Non-profits and NGOs

Environment


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Classification of Stakeholders

Primary Social

Stakeholders

Secondary Social

Stakeholders

Primary Non-Social

Stakeholders

Secondary Non

Social

Investors Govt & regulators Natural

environment

Environmental

pressure groups

Employees

&Managers

Civic Institutions Future generations Animal welfare

organisations

Local Communities Social Pressure

groups

Non human species

Suppliers Media and

academic

commentators

Other business

partners

Trade bodies,

industry

associations

Competitors


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What are the stakes?

Examples

Customer Segment 1 High Users of product,

seek improvement in product

Customer Segment 2 Low users of product,

required substitute

Employees Job security and pensions Political Parties Able to influence regulatory

process


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Influence of National and Regional

variations on CSR

High stress environments the area has hadalong period of economic disadvantage

Structurally disadvantaged areas remote places

Crisis Zone Collapse of a dominant company orindustry

Transitional Area

Forced to change areas regions based on a firmor industry are forced to change due to newentrants


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Other factors..

Culture

Role of government

Developed, developing and emergingcountries


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Importance can be judged based on

Power ability of stakeholder to influence

organizational decisions and actions

Legitimacy how far the organization

perceives the activities of stakeholders as

appropriate and desirable

Urgency the importance of stakeholder

claim to immediate actions


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Based on the above

Latent - one attribute

Expectant - two

Definitive all three


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Benefits to stakeholder

Functional Psychosocial

desirable end-states based on individual

values

Benefit to company

Cost reduction

Revenue enhancement Increased market value

Improved competitive conditions


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Benefits thru customer stakeholder

Improved loyalty

Improved image and reputation (build reputation

or lower reputation risk)

Benefits thru investor stakeholder

Screened portfolios

Improved reputation

Decreased long-term risk


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Benefits thru government stakeholder

Thru

Core business operations and investments

Strategic philanthropy and community investing

Public policy dialogue, advocacy and institutionbuilding

Results in

Gaining license to operate (tax credit, M& A

agreements, product/process monitoring) Developing connections with decision makers

Shaping policies and regulatory environment


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Benefits thru community stakeholder

Enhanced local reputation and integration

Benefits thru supplier stakeholder

Decreased cost

Increased revenue

Benefits thru employee stakeholder

Commitment and motivation

Recruitment and retention New skills and training


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Capitalizing CSR through Stakeholder

Orientation

Four stages

1. Identification

2. Commitment3. Trust

4. Satisfaction


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Stakeholder Map

Step 1: Identify generic stakeholders (Primaryand Secondary Group)

Step 2: Historic Analysis of the environment of

the firm Step 3: Identify Specific stakeholder groups

Step 4: Identify the stakes of these specific

groups Step 5: Identify the networks among the

stakeholder groups.


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Identifying Key Stakeholders

Medium Priority forattention

Medium priority for

attention

Low Priority for

attention

High Priority forattention

Low High

CompanysInfluence

St

akeholdersInterest

Insig

nificant

Signif

icant


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The Process Level

What are the processes a firm follows to

achieve a fit with the external environments?


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Types of partnering with Stakeholders

Knowledge Sharing thru feasibility studies,

proposals and evaluations

Dialogue

Informed Consent

Contractual

Shared Work Plans Shared Responsibility

(Warner and Sullivan 2003)


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Interacting With Stakeholders

(Transactional Level)

Routine Transactions Buying, selling,

dividends, AGM

Others Handling customer complaints, press

meets, meeting financial analysts, union, local

government bodies, other government

officials

Employees


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The Wal-Mart Controversy!!

Wal-Mart us one of the most powerful companiesin the world. At the foundation of the companys

success, however is its strategy of minimizing

costs, which relies on many policies that affectstakeholders in different ways.

Detail the various ways in which Wal-Mart affectsseveral stakeholder groups and what the

company has to offer to each of those groups. Is there a net-positive or a net-negative impact

on each of them?

Documents

Csr 3 Stakeholder Engagement