Stakeholders and Issues Management Approaches


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Stakeholders and Issues Management Approaches

  1. 1. Chapter 2 – Stakeholdersand Issues Management Approaches By: Sarah Obaidee Joseph Olivas Meghedi Dirghazarianmalhami
  2. 2. What is a stakeholder? Individual or group that affects all aspects of decision making in an organization. Primary stakeholders are individuals immediately affected by the organization. i.e. suppliers, owners, employees, etc. Secondary stakeholders include a variety of interest groups. i.e. media, lobbyist, etc.
  3. 3. What is a stake? A stake is any interest, share, or claim that a group or individual has in the outcome of a corporation’ policies, procedures, or actions towards others. Stakes of being a student at Woodbury University? Interest? Education,…..?
  4. 4. Stakeholder’s Approach Theory that preaches ethical behavior in order to gain a competitive advantage. Lowes Strives to reach “win-win” outcomes. Companies that practice this Home theory in their industry tend to get Depot a leg up on their competitor. i.e. Lowes v Home Depot.
  5. 5. Stakeholder Analysis Assist in the understanding between an organization and its constituents. Due to the uniqueness of each situation, the approach must be mapped out in order to develop a strategy. The framework is developed not only for individuals in high ranking positions, but also so any employee may see the corporate dealings.
  6. 6. Role of the CEO in StakeholderAnalysis The role of a CEO is to get a handle of the situation to help approach and mediate concerns from customers, media, etc. CEO is there to answer the who, what, where, why, when, and how of the situation
  7. 7. Stakeholder Analysis in 7 Steps1. Map stakeholder relationships2. Map stakeholder coalitions3. Assess the nature of each stakeholder’s interest4. Assess the nature of each stakeholder’s power5. Construct a matrix of stakeholder moral responsibilities6. Develop specific strategies and tactics7. Monitor shifting coalitions
  8. 8. Stakeholder Dispute Resolution Methods Dispute resolution is a tactic also known as “alternative dispute resolution” Dispute resolution is a variety of methods to help possible litigants resolve conflicts Ranges from parties taking control of process to giving control to a third party  i.e. face to face negotiation and litigation
  9. 9. Ethical Reasoning for Stakeholders Ethical reasoning involves trying to analyze what is fair and who is being affected by the actions. Involves helping and identifying the weaker and quiet stakeholders getting their voices heard in the decision process What can be done when stakeholder are not being treated fairly?
  10. 10. Moral Responsibilities The analysis ensures that managers are prepared to define their own moral responsibilities, as well as those of the company. The approach focuses the organization’s attention on both internal and external areas. Managers are liable for the morals of the company, that can quickly be made public due to technology. If a stakeholder knows the roles, it clarifies the responsibilities of the task.
  11. 11. Issue Management Issue management is used to forecast the actions to take for emerging factors that have an impact on organizations and stakeholders. Controversy can be avoided if proper issue management is implemented. The evolution of an issue can be traced with proper issue management.
  12. 12. Moral Dimension of Stakeholder and IssueManagement Studies argue that being moral is “issue dependent” They argue that the severity of the issue is what triggers reasoning. Morals are necessary in leadership positions, as the decisions affect all stakeholders. Identifying issues and ensuring that they are moral is a goal for all managers to benefit their company.
  13. 13. The Two Frameworks Frameworks can be used to map and manage issues before they arise. Frameworks can also be used to plan and manage to prevent, or to handle issues that may have already arisen. Frameworks are not organization specific Stakeholder analysis can display why strategies and actions stunt the evolution of an organization.
  14. 14. First Approach The six-step issue management process.  Environmental scanning and issues identification.  Issue analysis  Issue ranking prioritizing  Issue resolution strategizing  Issue response and implementation  Issue evaluation and monitoring.
  15. 15. Felt NeedSecond Step Seven-phase issue development process. Media Coverage Litigation  A felt need arises  Media coverage is deployed  Interest group development  Policies are adopted by leading political jurisdictions Interest Group Legislation  The federal government Development and Growth and Regulation gives attention to the issue.  Issues and policies evolve into legislation and regulation  Issues and policies enter litigation. Leading Political Jurisdictions Federal Government Attention
  16. 16. Managing Crises Crisis management emerged from observing how corporations and leaders react to crises. Steven Fink describes crisis as “a turning point for better or worse.” The direction that organization moves into is dependent on the leaders’ reaction.
  17. 17. Four Crisis Management Stages  Pre-crisis  Prodromal stage  Warming; symptoms Crisis Occurs  Acute stage  Point of no return Lingering  Chronic stage  Self-doubt, self-analysis Health restored  Conflict resolution stage  Return to normalcy
  18. 18. First Stage Prodromal Stage Warning stage Does not always occur or is not evident. This stage should be carefully observed. Must be taken seriously in order to prevent crisis. If does not occur, or is ignored, the point of no return quickly occurs.
  19. 19. Second Stage Acute Crisis Damage has already occurred Damage control must be administered Stage where the severe damage occurs Considered the shortest stage
  20. 20. Third Stage Chronic crisis Clean up phase Time of healing, recovery ,and self analysis Studies have shown when there is no crisis plan set companies stay in this phase 2.5 time longer
  21. 21. Fourth Stage Crisis Resolution Final stage – Crisis Management Goal “What can and should an organization do to speed up this phase and resolve crisis once and for all?”
  22. 22. How Executives Have Respondedto Crisis? Five phases of corporate social response to crises Used to evaluate and examine moral responsibilities of corporate response 1. Reaction 2. Defense 3. Insight 4. Accommodation 5. Agency
  23. 23. Any Questions?