This document discusses the importance of effective stakeholder dialogue in corporate communications, emphasizing the need for organizations to construct clear messages and identify relevant stakeholders. It highlights the significance of understanding stakeholder perspectives and the dynamic nature of stakeholder relationships in fostering trust and cooperation. The conclusion reiterates that quality stakeholder engagement focuses on meaningful communication rather than merely meeting every request.

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A PRACTICAL REVIEW OF EFFECTIVE STAKEHOLDER DIALOGUE
Budi Santoso
Dosen PNSD Kopertis Wilayah II Palembang
ABSTRACT
Corporate Communications or Public Relations managers cannot
make organizations more effective unless stakeholder dialogue
functions as an integral part of the organizations. This article
explains that people who are around and by that, have strong
influence towards the organizations, called stakeholders, should
be treated in excellent ways. Dialogue is one ordinary method
organizations usually do in dealing with stakeholders,
particularly when the organizations are having problems. It is
about communicating with stakeholders in a way that takes
serious account of their views. Writer suggests two extensive
ways how to have an outstanding dialogue to reach intended
best outcomes, namely, constructing clear messages and
identifying the stakeholders themselves. Writer believes that if
organizations know the ins-and-outs of their stakeholders as well
as send understandable and unambiguous steps before and when
conducting dialogues, first-rate results will be at hands.
Keywords: Corporate Communications, stakeholder, Dialogue
INTRODUCTION
Organization is a medium where many people interact and communicate
in such expected favorable atmosphere, creating and living in a
multifaceted system. An organization also functions as a medium to
gather various clients with different personal purposes and objectives,
even though in general they have the same organizational ones.
Nonetheless, these clients are interrelated to their goals and by that,
interdependence in terms of administrative and production services
provided by the organization.

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Some key factors which have significant influence in an organization are
stakeholders. This terminology has been popular since organizations get to
know that their internal and external publics are very influential.
Professional organizations especially in form of international or
multinational companies usually have a corporate communications
department. Before we continue to discuss about building an effective
dialogue with stakeholders, we should know the basic concept of
stakeholder itself.
WHO ARE STAKEHOLDERS?
Stakeholders can be considered of as any group or individual who can
have effects on, or who can be affected by, a corporation or its routine
activities, particularly related to plans, production, marketing, and
distribution. We can also believe of stakeholders as groups or individuals
who characterize value propositions for the organization and who
consequently must be attended to as part of a sound commercial
approach to building loyalty with customers, employees and investors.
Stakeholders are sometimes divided into (i) primary stakeholders, or those
who have a direct stake in the organization and its success, and (ii)
secondary stakeholders, or those who may be very influential, especially in
questions of reputation, but whose stake is more representational than the
previous one. Secondary stakeholders can also be surrogate
representatives for interests that cannot represent themselves, i.e., the
natural environment or future generations. This should not be assumed to
be a comprehensive or exclusive list. Because of the number and
spectrum of stakeholders, organizations often start by defining a narrow
group of key stakeholders with whom they seek to engage.

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Nevertheless, relationships with stakeholder groups are typically neither
static nor uniform. The map of stakeholders may look dissimilar from issue
to issue, and new stakeholders can emerge on the scene unexpectedly. An
individual or organization may have several different stakeholder
relationships with a company as well as interrelationships with other
stakeholders. Moreover, in a world of networks based on internet
connectivity, alliances between stakeholders in business may grow,
change or fall down with equal rapidity. This is why many leading
businesses focus more on developing the requisite organizational mindsets
and capabilities needed to build trust-based relationships with their
stakeholders than on static mapping of relationships and priorities from
the company’s perspective.
THE BOUNDARY OF STAKEHOLDER DIALOGUE
Dialogue is an exchange of views and opinion to explore different
perspectives, needs and alternatives, with a view to fostering mutual
understanding, trust and cooperation on a strategy or initiative.
Stakeholder dialogue offers a tool to engage people in serious discussion,
and a designed and facilitated process for groups to initiate dialogue with
those persons and institutions that have a stake in their activities.
There are many forms of stakeholder engagement. Dialogue is about
communicating with stakeholders in a way that takes serious account of
their views. It does not mean involving stakeholders in every decision, or
that every stakeholder request will be met. It means that stakeholder
input should be acknowledged and thoughtfully considered. It is about
giving stakeholders a voice, listening to what they have to say, and being
prepared to act or react accordingly. Though dialogues are, in effect,
simply meetings, it is important to remember that they provide a powerful

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tool to listen and learn more about stakeholders. They also offer a
mechanism to share one’s own thinking and to maintain and/or strengthen
relationships.
Today, business has to make decisions in a more demanding and informed
global society. Increasing competition, more domestic and international
pressure to be transparent and changing societal expectations make it
impossible for companies to operate without being in close contact with
those around them. Among companies, there has been a sharp increase in
stakeholder engagement activities as they have come to realize that
people or groups outside the core areas of influence can also be
stakeholders. The traditional circle of stakeholders has expanded.
Previously, the principal groups were shareholders, employees, suppliers,
customers, contractors, authorities, media, the financial and the direct
community. This group has now grown to embrace a wider range of
actors such as youth and religious groups, NGOs, IGOs, global institutions,
and many more (Kluver, 2007). A well planned and designed stakeholder
dialogue should focus on several steps, which are constructing clear
messages, and identifying the stakeholders.
CONSTRUCTING CLEAR MESSAGES
Planning is an unavoidable requirement to obtain effective dialogue and
long-lasting engagement with stakeholders. Planning is not merely about
creating it but also how to maintain it. Be prepared to be as open and
transparent as possible. An organization should identify the problems they
have, analyze their supporting data and inventory resources, as well as
determine their objectives. All those items, then, are formulated to
develop effective messages to be shared with stakeholders. Determining
relevant knowledge and issues that exist at the time the plan is made is

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also important, thus the messages may not be unclear and out of
question.
Communicating issues with stakeholders via dialogue is not a short simple
activity. The organization should think about and prepare the continuity
of the dialogue early. Long-term engagement is needed to establish
deeper relations to them (Curtin and Gaither, 2007). Yet, this needs a
consultation with them on how or if they want to keep communication
after the dialogue is done.
Building engagement through good messages, on my perspective,
demands several things. Firstly, messages that are going to be conveyed
in the dialogue must be constructed as clear and realistic as possible. If
stakeholders do not get the distinct points of the dialogue or if they
assume that the issues are not as important as they think, a dead end
may happen. Therefore, when the process of dialogue is taking place,
openness and transparency of the messages share must put ahead. This
shows that organization favorably respects them and really needs their
inputs.
Secondly, the messages should reflect both organization’s expectations
and stakeholders’ as well. Organization, of course, expects good results or
constructive output from the dialogue, which meets their interests. But
they must not leave the stakeholders’ behind. However, by understanding
stakeholder’s expectation may facilitate organizations to predict some
possibilities that may concur in the dialogue. Making prediction enables
organizations to arrange some back up plans to strengthen their position
in the dialogue. But still, the dialogue should be directed to get a win-win
solution. Thus, stakeholders are not treated as opponents

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Thirdly, messages should be formulated as being flexible and open to
improvising in the program based on stakeholder desire. Flexible does not
mean that organization easily change their plans or decisions. It is more to
adjust favorably the position to the most profitable existing circumstances.
Previous Insightful comments (if any) from involved stakeholders must be
seriously considered as useful input for organization’s needs. And also
important to allow enough time for planning, planning and more planning.
IDENTIFYING STAKEHOLDERS
Organizations, especially the big ones, deal with various stakeholders. This
stakeholder ranges from the most influential to the less ones. As what
Freeman (1984) in Coady (2007) said that investing time and resources in
addressing stakeholders interests is viable managerial activity. This
means that organizations should really pay attention in describing their
relations with stakeholders who relate closely to the problems they are
facing. It is because not all stakeholders will be equally likely to
communicate with or affect the organization (Grunig & Repper, 1992).
However, it is important to know that identifying stakeholders is not as
easy as it might seem. Start thinking about the longer-term engagement
process early and consult your stakeholders on how or if they want
continued communication
Given that stakeholders are various and even multilayer, an organization
should clearly classify their stakeholders’ involvement. Identifying
stakeholders by prioritization may be very useful. This fact requires an
organization to carefully choose them by making priorities according to
their relative importance to the organization (Curtin & Gaither, 2007).
Therefore, knowing the key stakeholders by their involvement to the
issues or problems is a must. What concerns they have and what

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consequences an organization could possibly have on them. Grunig and
Hunt (1984) in Coady (2007) framed a linkage model which is useful to
distinguish different position of stakeholders. This model may be utilized
to assort stakeholders into several segmentations, and thus, easing
organization to prepare good treatment for each. Harrison (1982) in
Grunig and Repper (1992) suggested that practitioners in the
organizations can scan the environment from conducting or using public
opinion polls, studying the mass media and specialized media, reading
scholarly or legal journals to calling on experts in the organization.
Focusing on the quantity of stakeholders is not recommended.
Stakeholders should be invited on the basis of their attributes and ability
to be thought provoking. Categorizing stakeholder’s level of power,
legitimacy, dependency, support or urgency, for example, can give clear
data for organization about stakeholder’s positions. Organizations should
prioritize the most significant stakeholders that hold all the attributes.
Mitchell et al (in Coady, 2007) called them definitive stakeholders. This
kind of stakeholder has power to shape organizations’ decisions as well as
influence others to change their positions.
Besides that, an organization should also take into account the fast
changing of situation and other influential publics that may influence the
stakeholder’s position. Media coverage on social-political issues, for
instance, may possibly intertwine stakeholders’ opinions and attitude.
Stakeholders may support the organization’s plan at first but can
potentially endanger it if they are carried away by and believe in media
analysis. Important to know that media themselves are intervening public
an organization may deal with.

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CONCLUSION
To sum up, I concluded that constructing clear messages and identifying
stakeholders before communicating issues with stakeholders as elaborated
in this paper are very important in achieving effective dialogues. However,
Communicating the issues through dialogue does not mean that an
organization involve the stakeholders in any decisions or meet with their
all requests. It is more about providing them with favorable situation to
get distinct information. But last but not the least, Focus on quality not
quantity. It means that participants should be invited on the basis of their
credibility and ability to be thought provoking
Bibliography
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Grunig, J., & Repper F.C. (1992). Strategic Management, Publics, and Issues? In J.
Grunig (Ed.), Excellence in Public Relations and Communicaition Management.
New Jersey: Lawrence Erlbaum Associates.
Kluver, R. (2007). Globalization, Information, and Intercultural Communication.
Retrieved Januari 22, 2008, from acjournal: www.acjournal.org
Patricia A Curtin, TK Gaither. (2007). International Public Relations: Negotiating
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WBCSD. 2007. Stakeholder Dialogue: The WBCSD Approach to Engagement
retrieved on 23 November 2007 from The World Business Council for Sustainable
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