stakeholders and issues management approaches
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Chapter 2 – Stakeholders and Issues Management
Approaches
By:
Sarah Obaidee
Joseph Olivas
Meghedi Dirghazarianmalhami
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.
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,…..?
Stakeholder’s Approach
Theory that 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.
Lowes
Home Depot
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.
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
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
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
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?
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.
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.
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.
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.
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
.
Second Step Seven-phase issue
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.
Felt Need
Media Coverage
Interest Group Development and Growth
Leading Political
Jurisdictions
Federal Government
Attention
Legislation and
Regulation
Litigation
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.
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
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.
Second Stage Acute Crisis
Damage has already occurred
Damage control must be administered
Stage where the severe damage occurs
Considered the shortest stage
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
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?”
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
Any Questions?