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STAKEHOLDER IDENTIFICATION &
PRIORITIZATION
@JOHNFRIEDMAN

• 20+ years communications professional
• 10+ sustainability
  – Program strategy, development and
    implementations
  – Stakeholder communications
• Sustainable Business Network of Washington
• Centre for Sustainability and Excellence
Vision and Mission



CSE is an global advisory and training organization that provides
Sustainability Solutions to the public and private sectors.

As an international network of specialists and consultants, CSE provides
organizations, governments, and institutions unique and advanced
services to achieve Stakeholder Value across Operational and
Organizational frameworks.
                                  VISION
 CSE’s overall objective is to create positive impact and added value for
             all stakeholders across the Triple Bottom Line.

                               MISSION
To coach and support Organizations, Society and Governments in making
                a sustainable difference in the world.
CSE WORLDWIDE ACTIVITIES*




                                                                    Germany
                                       CSE Belgium

                                                                              Baltic Countries (Latvia)
                            Great Britain                    Romania

  CSE N. America                                                                      Bulgaria
                            Spain                                                     Turkey


                             Luxembourg
                                              Italy




                                     Austria
                                                                                      India
                                            Croatia

                                            CSE Greece                                           Singapore


                                                Egypt

                                                         CSE Cyprus

                                                  Saudi Arabia


                                                                 Qatar           UAE (Dubai, Abu Dhabi)




 Worldwide Activities Include: Projects, Conferences, Workshops and various other activities
                          Cities marked in red represent CSE Offices
Solutions for Sustainability


                   Sustainability (CSR)
                       Reporting
                       based on
   Life Cycle
                     GRI Guidelines
Assessment (LCA)                          Green & Social
        &                                 Cause Marketing
     Carbon
    Footprint




    Certified
    Training                                 Supply
   Workshops                                  Chain
   & Webinars                              Management
                      Sustainability
                      Verification &
                       Assurance
CSE PARTNERSHIPS AND CLIENTS
WHAT WE’LL COVER

• Stakeholder Identification & Prioritization
• Transparency, Communication &
  Accountability
  – Social Media
• Workshop Exercise: Stakeholder Assessment
  Matrix
• Conclusions and Questions
STAKEHOLDER IDENTIFICATION &
PRIORITIZATION
SUSTAINABILITY – A BUSINESS CARE


                    Social &
                  Enviromental
               Licence to Operate




   Creating Value for all Stakeholders
FIVE KEYS TO MAXIMIZING SUSTAINABILITY
                 EFFORTS
• Aligns with your Core Business Model
• Integrates Sustainability into Day-to-Day
  Operations
• Employees are Actively Engaged and
  Empowered
• Provides Tangible, Credible Benefits
• Maximizes Stakeholder Engagement
STAKEHOLDER IDENTIFICATION

Primary stakeholders            Secondary stakeholders
• Stakeholders who are          • Stakeholders who are
   critical to the company’s      affected by a company’s
   existence & activities         activities & decisions


                    1.   Customers
                    2.   Employees
                    3.   Shareholders
                    4.   Suppliers
                    5.   Competitors
                    6.   Communities
STAKEHOLDER PRIORITIZATION
                      Suppliers               Retailers       Local
        Advocacy                                            community
                                                                          General
          Orgs                      Clients                                public

                                                   Biz
                                                  Media       Consumer
                                                               groups
      Competitors      Government

                                                                         General
                                      Company                             Media
Advertisers                                               Regulators
                      Employees

         Insurers
              &                                  Analysts                 Unions
         Litigators
                      Celebrities Shareholders                Bloggers
                           &
                      Role models
TRANSPARENCY, COMMUNICATION &
ACCOUNTABILITY
Tangible Values
    (Generally Audited Financial Information)

                      Financial Capital

                                       Physical Assets

Intangible Values
(Generally Non-audited, Non-financial Information)


                       Intellectual         Sustainability
                        property
                                 Brand loyalty
                 Quality of
                 employees           Community
                             Labor
                         environment support
                         Unallocated
                           goodwill
REPUTATIONAL CAPITAL
         (BRAND EQUITY; GOODWILL)

• Needed for quality income
• Necessary to get low cost of capital
• Critical to hire/retain the best employees
• Gets you through rough times
• Avoids commodity pricing/builds value added
WHAT DOES YOUR COMPANY DO?
              • Far beyond the
                goods and services
                your company
                provides
              • The IMPACTS* those
                goods and services
                and the manner in
                which they are
                produced have on
                peoples’ lives
                 * Real and perceived
CONCLUSION:

• To improve company valuation, Improve CSR
  relationships!

• Good CSR Relationships Lead to The Sustainable
  Corporation
WHY JOIN THE CONVERSATION?

• Your stakeholders are being engaged right
  now. Either about you, or without you.
• If your customers are posting negative reviews
  on Facebook, Yelp, etc., you probably should
  be listening.
• If your employees are saying things you don’t
  like about you on twitter, the problem is not
  twitter.
YOU WERE NEVER IN ‘CONTROL’
     OF YOUR BRAND
YOU WERE NEVER IN ‘CONTROL’
     OF YOUR BRAND
YOU WERE NEVER IN ‘CONTROL’
     OF YOUR BRAND
YOU WERE NEVER IN ‘CONTROL’
     OF YOUR BRAND
BLOGGERS ARE THE PROFESSIONAL
      JOURNALISTS OF THE 21ST CENTURY
• Traditional media has not been without its
  growing pains and missteps either.
SOMETIMES 140 CHARACTERS IS ENOUGH TO
        GALVANIZE THE WORLD




  32 CHARACTERS WERE ENOUGH TO TELL THE WORLD
        OF THE MIRACLE UNFOLDING IN CHILE
          – AND TO HELP MAKE IT HAPPEN
POWER OF THE INTERNET
ENGAGE THE POWER OF SOCIAL MEDIA

•   Engage with Customers
•   Empower your Employees
•   Inform Shareholders
•   Build relationships with Suppliers
•   Uphold high standards with your Competitors
•   Integrate with your Communities
EXERCISE: IDENTIFYING STAKEHOLDERS
& CORPORATE RISKS
THE STAKEHOLDER APPROACH & CSR
Objective:   To understand and identify stakeholders’
             different expectations of your organization;
             To be able to implement systematic methods for
             identifying stakeholders’ expectation

Tasks:       1. Identify at least 3 different stakeholder
             groups of your organization and their potential
             needs / expectations.
             2. Complete the supplement table and identify
             at least one risk per stakeholder for your
             organization
             3. Identify systematic ways for engagement with
             the selected stakeholders
IDENTIFYING STAKEHOLDERS
                      RISK MODEL
STAKEHOLDER    RISK              IMPACT   PROBABILITY   PRIORITY

Customers      Loss of market         3         3             9
               share


Employees      Reduced loyalty
               Lack of
               engagement
Shareholders   Dump your
               stock
Suppliers      Loss of
               relationships
Competitors    Predate
               customers
Community      Barriers
IDENTIFYING STAKEHOLDERS
                  OPPORTUNITY MODEL
STAKEHOLDER    OPPORTUNITY     BENEFIT   LIKELIHOOD   PRIORITY

Customers      Pay a premium         3        3             9
               Brand loyalty


Employees      Recruitment
               Retention
               Productivity
Shareholders   Loyalty

Suppliers      Pricing

Competitors    Co-opetition

Community      License to
               Operate
• Community IT Innovators
• 1330 U St, NW - Suite 200
  Washington, DC
• 5 – 7 PM

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Green Biz Washington DC

  • 2. @JOHNFRIEDMAN • 20+ years communications professional • 10+ sustainability – Program strategy, development and implementations – Stakeholder communications • Sustainable Business Network of Washington • Centre for Sustainability and Excellence
  • 3. Vision and Mission CSE is an global advisory and training organization that provides Sustainability Solutions to the public and private sectors. As an international network of specialists and consultants, CSE provides organizations, governments, and institutions unique and advanced services to achieve Stakeholder Value across Operational and Organizational frameworks. VISION CSE’s overall objective is to create positive impact and added value for all stakeholders across the Triple Bottom Line. MISSION To coach and support Organizations, Society and Governments in making a sustainable difference in the world.
  • 4. CSE WORLDWIDE ACTIVITIES* Germany CSE Belgium Baltic Countries (Latvia) Great Britain Romania CSE N. America Bulgaria Spain Turkey Luxembourg Italy Austria India Croatia CSE Greece Singapore Egypt CSE Cyprus Saudi Arabia Qatar UAE (Dubai, Abu Dhabi) Worldwide Activities Include: Projects, Conferences, Workshops and various other activities Cities marked in red represent CSE Offices
  • 5. Solutions for Sustainability Sustainability (CSR) Reporting based on Life Cycle GRI Guidelines Assessment (LCA) Green & Social & Cause Marketing Carbon Footprint Certified Training Supply Workshops Chain & Webinars Management Sustainability Verification & Assurance
  • 7. WHAT WE’LL COVER • Stakeholder Identification & Prioritization • Transparency, Communication & Accountability – Social Media • Workshop Exercise: Stakeholder Assessment Matrix • Conclusions and Questions
  • 9. SUSTAINABILITY – A BUSINESS CARE Social & Enviromental Licence to Operate Creating Value for all Stakeholders
  • 10. FIVE KEYS TO MAXIMIZING SUSTAINABILITY EFFORTS • Aligns with your Core Business Model • Integrates Sustainability into Day-to-Day Operations • Employees are Actively Engaged and Empowered • Provides Tangible, Credible Benefits • Maximizes Stakeholder Engagement
  • 11. STAKEHOLDER IDENTIFICATION Primary stakeholders Secondary stakeholders • Stakeholders who are • Stakeholders who are critical to the company’s affected by a company’s existence & activities activities & decisions 1. Customers 2. Employees 3. Shareholders 4. Suppliers 5. Competitors 6. Communities
  • 12. STAKEHOLDER PRIORITIZATION Suppliers Retailers Local Advocacy community General Orgs Clients public Biz Media Consumer groups Competitors Government General Company Media Advertisers Regulators Employees Insurers & Analysts Unions Litigators Celebrities Shareholders Bloggers & Role models
  • 14. Tangible Values (Generally Audited Financial Information) Financial Capital Physical Assets Intangible Values (Generally Non-audited, Non-financial Information) Intellectual Sustainability property Brand loyalty Quality of employees Community Labor environment support Unallocated goodwill
  • 15. REPUTATIONAL CAPITAL (BRAND EQUITY; GOODWILL) • Needed for quality income • Necessary to get low cost of capital • Critical to hire/retain the best employees • Gets you through rough times • Avoids commodity pricing/builds value added
  • 16. WHAT DOES YOUR COMPANY DO? • Far beyond the goods and services your company provides • The IMPACTS* those goods and services and the manner in which they are produced have on peoples’ lives * Real and perceived
  • 17. CONCLUSION: • To improve company valuation, Improve CSR relationships! • Good CSR Relationships Lead to The Sustainable Corporation
  • 18. WHY JOIN THE CONVERSATION? • Your stakeholders are being engaged right now. Either about you, or without you. • If your customers are posting negative reviews on Facebook, Yelp, etc., you probably should be listening. • If your employees are saying things you don’t like about you on twitter, the problem is not twitter.
  • 19. YOU WERE NEVER IN ‘CONTROL’ OF YOUR BRAND
  • 20. YOU WERE NEVER IN ‘CONTROL’ OF YOUR BRAND
  • 21. YOU WERE NEVER IN ‘CONTROL’ OF YOUR BRAND
  • 22. YOU WERE NEVER IN ‘CONTROL’ OF YOUR BRAND
  • 23. BLOGGERS ARE THE PROFESSIONAL JOURNALISTS OF THE 21ST CENTURY • Traditional media has not been without its growing pains and missteps either.
  • 24. SOMETIMES 140 CHARACTERS IS ENOUGH TO GALVANIZE THE WORLD 32 CHARACTERS WERE ENOUGH TO TELL THE WORLD OF THE MIRACLE UNFOLDING IN CHILE – AND TO HELP MAKE IT HAPPEN
  • 25. POWER OF THE INTERNET
  • 26. ENGAGE THE POWER OF SOCIAL MEDIA • Engage with Customers • Empower your Employees • Inform Shareholders • Build relationships with Suppliers • Uphold high standards with your Competitors • Integrate with your Communities
  • 28. THE STAKEHOLDER APPROACH & CSR Objective: To understand and identify stakeholders’ different expectations of your organization; To be able to implement systematic methods for identifying stakeholders’ expectation Tasks: 1. Identify at least 3 different stakeholder groups of your organization and their potential needs / expectations. 2. Complete the supplement table and identify at least one risk per stakeholder for your organization 3. Identify systematic ways for engagement with the selected stakeholders
  • 29. IDENTIFYING STAKEHOLDERS RISK MODEL STAKEHOLDER RISK IMPACT PROBABILITY PRIORITY Customers Loss of market 3 3 9 share Employees Reduced loyalty Lack of engagement Shareholders Dump your stock Suppliers Loss of relationships Competitors Predate customers Community Barriers
  • 30. IDENTIFYING STAKEHOLDERS OPPORTUNITY MODEL STAKEHOLDER OPPORTUNITY BENEFIT LIKELIHOOD PRIORITY Customers Pay a premium 3 3 9 Brand loyalty Employees Recruitment Retention Productivity Shareholders Loyalty Suppliers Pricing Competitors Co-opetition Community License to Operate
  • 31. • Community IT Innovators • 1330 U St, NW - Suite 200 Washington, DC • 5 – 7 PM