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Stake Holders Management Issues
- 2. Stakeholders and Issues ManagementApproaches
- 3. PRESENTED TO: • RESPECTEDCOL IJAZ KHALID
- 4. PRESENTED BY: • MuhammadShahroze Ilyas • Mubeen Abdul Shakoor • Adeel Asif • Muhammad Fahad Khan
- 5. What is astake? • 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.
- 6. What is astakeholder? • Individual or group that affects all aspects of decision making in an organization.
- 7. Stakeholder’s Approach • Theorythat preaches ethical behavior in order to gain a competitive advantage. • Strives to reach “win-win” outcomes. • Companies that practice this theory in their industry tend to get a leg up on their competitor. i.e. Lowes v Home Depot.
- 8. Stakeholder Analysis • Assistin 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.
- 9. Who Are BusinessStakeholders? Government Employees Business Community Consumers Owners
- 10. Who Are BusinessStakeholders? Primary and Secondary Stakeholders •Primary stakeholders are those stakeholders that have a direct stake in the organization and its success •Secondary stakeholders are those that have a public or special interest stake in the organization
- 11. Who Are BusinessStakeholders? Core, Strategic, and Environmental Stakeholders • Core stakeholders are essential to the survival of the firm • Strategic stakeholders are vital to the organization and the threats and opportunities the organization faces • Environmental stakeholders are all others in the organization's environment
- 12. Who Are BusinessStakeholders? • Legitimacy refers to the perceived validity of the stakeholder’s claim to a stake • Power refers to the ability or capacity of a stakeholder to produce an effect • Urgency refers to the degree to which the stakeholder’s claim demands immediate attention Legitimacy, Power, Urgency: A Typology of Stakeholder Attributes
- 13. Role of theCEO in Stakeholder Analysis • 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
- 14. Stakeholder Analysis in7 Steps 1. Map stakeholder relationships 2. Map stakeholder coalitions 3. Assess the nature of each stakeholder’s interest 4. Assess the nature of each stakeholder’s power 5. Construct a matrix of stakeholder moral responsibilities 6. Develop specific strategies and tactics 7. Monitor shifting coalitions
- 15. 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
- 16. Ethical Reasoning forStakeholders • 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?
- 17. Moral Responsibilities • Theanalysis 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.
- 18. Issue Management • Issuemanagement 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. •
- 19. Moral Dimension ofStakeholder and Issue Management • 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.
- 20. 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.
- 21. First Approach • Thesix-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 .
- 22. Second Step • Seven-phaseissue development process. – A felt need arises – Media coverage is deployed – Interest group development – Policies are adopted by leading political jurisdictions – The federal government gives attention to the issue. – Issues and policies evolve into legislation and regulation – Issues and policies enter litigation. •
- 23. Managing Crises • Crisismanagement 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.
- 24. 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
- 25. First Stage • ProdromalStage • 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.
- 26. Second Stage • AcuteCrisis • Damage has already occurred • Damage control must be administered • Stage where the severe damage occurs • Considered the shortest stage
- 27. Third Stage • Chroniccrisis • 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
- 28. Fourth Stage • CrisisResolution • Final stage – Crisis Management Goal • “What can and should an organization do to speed up this phase and resolve crisis once and for all?”
- 29. Strategic, Multifiduciary, and SynthesisViews of Stakeholders • Strategic approach considers stakeholders primarily as factors managers should manage in pursuit of shareholder profits • Multifiduciary approach considers stakeholders as a group to which management has a fiduciary responsibility • Synthesis approach considers stakeholders as a group to whom management owes an ethical, but not a fiduciary responsibility
- 30. Effective Stakeholder Management Careful assessmentof the five core questions: • Who are our stakeholders? • What are our stakeholders’ stakes? • What opportunities and challenges do stakeholders present? • What economic, legal, ethical, and philanthropic responsibilities does our firm have? • What strategies or actions should our firm take to best manage stakeholder challenges and opportunities?
- 31. Stakeholder Power: Four Gatesof Engagement • Awareness • Knowledge • Admiration • Action
- 32. Principles of Stakeholder Management •Acknowledge • Monitor • Listen • Communicate • Adopt • Recognize • Work • Avoid • Acknowledge conflict
- 33.