1. Chapter 2 – Stakeholders
and Issues Management
Approaches
By:
Sarah Obaidee
Joseph Olivas
Meghedi Dirghazarianmalhami

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. 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. 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. 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. Role of the CEO 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

7. Stakeholder Analysis in 7 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

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. 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. 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. 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. Moral Dimension of Stakeholder 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.

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. 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. Felt
Need
Second 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. 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. 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. 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. Second Stage
 Acute Crisis
 Damage has already occurred
 Damage control must be administered
 Stage where the severe damage occurs
 Considered the shortest stage

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. 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. How Executives Have Responded
to 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. Any Questions?