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Andy Brough Chartered Marketers’ Forum - Stakeholder Relationships:What’s at Stake?
 

Andy Brough Chartered Marketers’ Forum - Stakeholder Relationships:What’s at Stake?

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    Andy Brough Chartered Marketers’ Forum - Stakeholder Relationships:What’s at Stake?  Andy Brough Chartered Marketers’ Forum - Stakeholder Relationships:What’s at Stake? Presentation Transcript

    • Redefining Marketing Strategy: Stakeholder Collaboration
    • Different Perspectives on Stakeholders “There is one and only one social responsibility of business, to use its resources and engage in activities designed to increase business.” Milton Friedman 1963 “The most ridiculous term heard in the boardroom today is ‘stakeholders’. Stakeholders! Every time I hear the word, I ask,‘How much did they pay for their stake?’” Albert J. Dunlap (Chainsaw Al) 1997 Mean Business: How I Save Bad Companies and Make Good Companies Great
    • Different Perspectives on Stakeholders “If . . . companies are to compete successfully in domestic and global markets, they must engineer stronger bonds with their stakeholders, including customers, distributors, suppliers, employees, unions, governments, and other critical players in the environment. Common practices such as whipsawing suppliers for better prices, dictating terms to distributors, and treating employees as a cost rather than an asset, must end. Companies must move from a short-term transaction orientated goal to a long-term relationship building goal.” (Philip Kotler, 1992)
    • Origins of the Stakeholder Concept What is a Stakeholder? An individual or group who possesses a stake
    • Origins of the Stakeholder Concept An interest or a share in an Stake undertaking and can be categorized as: an interest a right ownership legal right moral right
    • Stakeholders Individuals and groups who have a multitude of interests, expectations, demands, rights or ownership, can contribute in the form of knowledge or support, or can impact, or be impacted by a project, its work, or outcomes.
    • Implications for driving business outcomes Aligning your agenda to your stakeholders’ agenda mutuality commitment satisfaction trust
    • Why stakeholder relations matter. . . the business imperatives are numerous and strong: King III governance requirements Enhanced organisational performance through more effective stakeholder engagement The competitive advantage associated with political legitimacy The need for a strong corporate reputation with key strategic stakeholders Relationship age economics
    • Stakeholder engagement can: 9 Facilitate equitable and sustainable social development Enable better management of risk and reputation. Allow for the pooling of resources (knowledge, people, money and technology) (Balmer & Greyser, 2006)
    • Stakeholder engagement can: 10 enable understanding of the complex business environment enable corporations to learn from stakeholders inform, educate, and influence stakeholders and the business environment build trust between a company and its stakeholders. (Jahansoonzi, 2006)
    • The Accountability Commitment 11 acknowledging stakeholders’ right to be heard and accounting for one’s actions to stakeholders Principles Materiality Completeness Responsiveness Knowing what is Understanding Demonstrating important to you and your impact and adequate response your stakeholders what people think of you Inclusivity Ubuntu? Zhu, Bhat, & Nel, 2005
    • 12 Admired/ successful corporation Driving Corporate Reputation Corporate Reputation Management Delivering quality Meeting stakeholder products & services needs & expectations
    • 13 Integrated Marketing Strategy Character (what we are ) Culture Constituencies (what we feel we are ) (whom we seek to serve- Stakeholders) Concept Communication (what we are seen to be) (what we say we are ) Covenant (what is promised and expected) (Balmer & Greyser, 2006)
    • 14 Imperative to switch focus: Resulting Shift from. . . to. . . managing managing relationships as perceptions drivers of corporate as drivers of reputation and corporate resulting business reputation outcomes
    • Corporate Reputation focus: 15 Resulting Shift A corporate reputation is a stakeholder's overall evaluation of a company over time. This evaluation is based on the stakeholder's direct experiences with the company, any other form of communication and symbolism that provides information about the firm's actions and/or a comparison with the actions of other leading rivals. Gotsi & Wilson, 2001
    • 16 Drivers of Engagement Title of slide • Sub text
    • 17 3 Significant Stakeholder Trends 3 major trends Trend 1: Corporate engagement moving from companies with formerly recognisable brands and reputations to formerly invisible companies. Trend 2: Increase in stakeholder diversity & complexity and the range of issues they raise or champion. Trend 3: Increasingly sophisticated approaches to engagement by corporation seeking “win-win” outcomes with stakeholders
    • 18 What does this mean for business? Business success requires mastery of the ‘relationship imperative’ -- a philosophy that underscores the critical role of open, interactive, and information-rich relationships between a corporation and its stakeholders. Driving business outcomes
    • 19 What does this mean for business? stakeholder management stakeholder collaboration fragmented integrated focus on managing relationships focus on building relationships emphasis on buffering the focus on creating organization opportunities and mutual benefits linked to short-term linked to long-term business business goals goals dependent on division coherent approach driven by interests and personal style business goals, social of manager mission, and values
    • reputational social reporting capital and compliance Increasingly, corporate reputation is understood as Information on the being built through quality of stakeholder the organisation’s relationships is part of measuring and stakeholder relationships with all stakeholders reporting social/ environmental impacts relations organisational performance corporate governance Relationships as a stakeholder business asset and a Good governance principles increasingly engagement management competence. People also incorporates The quality of relationships need to be keen to guidelines on drives stakeholder buy from, work for, stakeholder engagement engagement and supply to, and invest (i.e. King III) responsiveness, ensuring the in a business. need and objectives of stakeholders are taken into account 20
    • 21 The Business case strategic collaborative solutions case early warning system issue identification risk management conflict mitigation
    • 22 Critical questions . . . . Who are our stakeholders? What do we want from our stakeholders? What strategies do we need to put in place to satisfy these wants? What processes will we follow to execute our strategy? What capabilities do we need to put in place? Performance Prism: Neely, Adams, & Kennerly, 2002
    • Effective Stakeholder Engagement 23 S Strategic Thinking E Effective Learning T Terms of Review engagement What’s at STAKE? K Key A Operatives Ability to respond
    • 24 Holistic Stakeholder Relationship Management Assess/ evaluate Improve the effectiveness engagement effectiveness of everyday SH and incorporate in engagement through SH sustainability reporting engagement policy Develop the Stakeholder Stakeholder Hub with Assess the Relations information on Gap Analysis environment Strategy priority Action plan for (the difference (analyse stakeholders between the ‘as is’ stakeholder (where will we focus and the ‘desired end engagement stakeholders and our scarce (detail about issues) state’) resources to relationship health, achieve the highest current engagement impact?) practices etc.) Special interventions: Measure impact and high-impact projects to incorporate in realise the Stakeholder sustainability reporting Relations Strategy
    • Global Organisational Development• Leadership •Sales & Marketing Strategy •Negotiation•Broadcasting “Equipping for Excellence”™ Chartered Marketer - CMSA (Services SETA & European Marketing Council)
    • References 26 Balmer, J.M.T., & Greyser, S.A. (2006), Corporate marketing: integrating corporate identity, corporate branding, corporate communications, corporate image and corporate reputation. European Journal of Marketing, 40 (7/8), 730-41. Bourne, L. (2008). Advancing theory and practice for successful implementation of stakeholder management in organizations,International Journal of Managing Projects in Business,1(4), 587-601. Burton, B.K.,& Dunn, C.P. (1996), "Feminist ethics as moral grounding for stakeholder theory", Business Ethics Quarterly, 6(2), 133-147. Clarkson, M. B. E. (1998) The Corporation and Its Stakeholders: Classic and Contemporary Readings.Toronto; University of Toronto Press. Agle, B. R., Mitchell, R. K., & Sonnenfeld, J. A. (1999). Who matters to CEOs? An investigation of stakeholder attributes and salience, corporate performance, and CEO values. The Academy of Management Journal, 42 (5), Special Research Forum on Stakeholders, Social Responsibility, and Performance, 507-525. Dewhurst, S., & Fitzpatrick, L. (2005). Turning stakeholders into advocates. Strategic Communication Management, Oct/Nov, 9(6), 6-7. Donaldson, T ., & Preston, L. E. (1995). The stakeholder theory of the corporation: Concepts, evidence and implications. Academy of Management Review, January, 65-91. Foley, J., & Kendrick, J. (2006). Balanced brand. How to balance the stakeholder forces that can make or break your business. San Francisco, CA: Jossey-Bass. Freeman, R.E., Harrison, J. S., & Wicks, A. C (2007). Managing for stakeholders: Survival, reputation, and success. New Haven & London: Yale University Press. Frooman, J. (1999). Stakeholder influence strategies. Academy of Management Review, 24, 191-205. Gotsi, M., & Wilson, A. M. (2001). Corporate reputation seeking a definition. Corporate Communication: An International Journal 6, (1), 24-30. Herington C, Johnson, L.W.,& Scott, D. (2006). Internal relationships: Linking practitioner literature and relationship marketing theory. European Business Review, 18, 364-381. International Association for Public Participation (2002). IAP2’s Public participation toolbox. Retrieved January 23, 2010 from,http://www.iap2.org
    • References 27 Jackson, C., & Bundgard, T. (2002). Achieving quality in social reporting. The role of surveys in stakeholder consultation. Business Ethics: A European Review, 11 (3), 253-259. Jahansoozi J. (2006). Organization-stakeholder relationships: exploring trust and transparency. Journal of Management Development, 25(10),942-945. Kotler, P. (1992). Total marketing. Business Week Advance, Executive Brief, 2. LaBerge, M., & Svendsen, A. (2000). New growth: Fostering collaborative business relationships. The Journal for Quality and Participation, May-June: 48-50. Lozano, J. M.(2005). Towards the relational corporation : from managing stakeholder relationships to building stakeholder relationships (waiting for Copernicus). Corporate Governance, 5(2), 60-77. Malhotra, N. K., & Agarwal, J. (2002). A Stakeholder perspective on relationship marketing : Framework and propositions. Journal of Relationship Marketing, 1(2), 3-38. Neely, A., Adams, C. & Kennerly, M. (2002). Performance Prism: The scorecard for measuring and managing business success. Harlow:UK, Pearson. Polonsky, M. J., & Scott, D. (2005). An empirical examination of the stakeholder strategy matrix. European Journal of Marketing, 39, (9/10),1199-1221. Positive Actions-Sasol Sustainable Development Report. (2009). Section 2: 15-20. Sasol stakeholder dialogue. (2008): 1-9 Salancik, G. R., & and Jeffrey Pfeffer, J. (1974). The bases and use of power in organizational decision making: The case of a university. Administrative Science Quarterly, 19 (4) 453-473 Stakeholder Research (2005) From Words to Action, Volume 1 & 2 Practitioners’ Perspectives on Stakeholder Engagement. Retrieved January 20, 2010 from, http://www.stakeholderresearch.com/publications.htm Suchman, M. C. (1995). Managing legitimacy: Strategic and institutional approaches. Academy of Management Review, 20(3), 571-610. Zhu, Y., Bhat. R.,& Nel, P. (2005). Building business relationships: A preliminary study of business executives’ views. Cross Cultural Management,12(3), 63-84.