stakeholder report
duty13
LECTURE2fromBU52034withstakeholdermaps.pptx
Applying Skateholder Management
Objective
To learn about Stakeholder management tools and the ladder of influence.
To understand Social contract and stakeholder engagement.
To identify and evaluate stakeholders and stakeholder networks
Stakeholder Mnagement
The process of interpreting and influencing both the external and internal environments.
Prepares a strategy based on information gathering during identification and the analysis phase of the process.
Challenges
Unidentified stakeholders
-those not identified early in the project
Unreasonable stakeholders
-those who do not embrace the feature as required
Unclear stakeholders
-those who do not clearly articulate
-those who are not open and honest about their interests and expectation
There’s misalignment
-Conflicting priorities
-Unshared vision
Stakeholders changing over time
The process
Identify Stakeholders
Analyze Stakeholders
Prioritize Stakeholders
Engage Stakeholders
Communicate Often
(Re)set
Expectation
Review
Expectation
Act on
Expectation
(Re)set
Expectation
Review
Expectation
Identify stakeholders
Analyze stakeholders
Define the context and purpose
Determine who needs to be involved
Expectation from each stakeholder
Stakeholder expectation
Intangible and tangible deliverables needed from both sides
Describe the interaction or transaction for each stakeholder
Prioritize Stakeholders
High
The stakeholder map
What is it?
Provides a framework for managing stakeholders based on interest and influence
Y- axis sometimes –”Power”
X-axis sometimes –”interest”
The stakeholder map
Business owners and others with significant decision-making authority
Typically easy to identify
Diminish, sustain or nurture the project
Easy to actively engage
Set up consistent touch points
The stakeholder map
Those with significantly decision-making authority
Lacks the availability or interest to be actively engaged
Usually difficult to have consistent touch
The stakeholder map
Impacted by project but have little influence
Wants more time than allotted
Find efficient ways to communicate and keep them informed
-Email updates
-Presentations
-Publicity campaigns
The stakeholder map
Aren’t significantly involved
Not aware of the project
Know who they are
Monitor them and be aware of moving into other quadrants
Example
Prioritize stakeholders
Engaging Stakeholders
Determine the touch points
Define the expected objectives and outputs
Managing Expectations
Patience
Setting the right expectation
-on scope
-and timing
Prioritize right
Allocate feature resources and budget right
Be able to justify the decisions
Continuous planning and risk assessment
Act on
Expectations
(Re)set
Expectations
Review
Expectations
Communicate Often
How?
-Audio/Visual
-Direct
-Virtually
Print Materials
When?
-Proactive communication
Reactive communication
What objectives?
-Provide reporting material
-Review planning
-Review budget
-Information sharing
-Decision making
-To remain engaged
Provide feedback and support
Define and clarify requirements
Collaborate
Establish a trusting Agile environment
Which resources?
Define spokes people
-Good to speak with one voice
-Good to know the audience
Assessing the influence and importance of stakeholders
Key stakeholders are those who can significantly influence or are important to the success of the project.
Influence-is the power which stakeholders have over a project - to control what decisions are made, facilitate its implementation, or exert influence which affects the project negatively.
Importance- indicates the priority given by you to satisfying stakeholders’ needs and interests through the project.
Network
Networking is a valuable tool for gathering information.
Information is helpful for those who want to advance.
Obtaining information about professional activities can be of invaluable assistance to you in advocating for change.
To establish or be an effective member of a network, you need to understand what is required for developing and maintaining effective relations.
To influence a network then you must have some understanding of your personal leadership skills.
Responsible Management
A professional manager, professional conduct implies that wherever the organization’s benefit is achieved at the cost of the many stakeholders that make up society, professional responsibility supersedes the responsibility to make profit.
Professional managers are not just the ‘hired hands’ of a business who have to blindly follow orders, but rather they seek to achieve ‘higher aims’ through professional management practice.
Professional management is responsible management as it assumes responsibility for its impacts on the myriads of groups that affect and are affected by management, so-called stakeholders
Stakeholder value harmonization
Responsible management voluntarily assumes professional accountability for harmonizing stakeholder value in response to social, environmental, and economic issues
At the very core of responsible management is management in a network of stakeholder relationships.
Management’s social performance depends on how this ‘myriad of groups and relationships’ is navigated.
The ultimate goal of stakeholder management is the creation of value for all those different groups that ‘affect or are affected’, the creation of value for stakeholders
Stakeholder value harmonization
The idea of managing in a way that benefits both, management and society, internal and external stakeholders sounds nice.
What are the fundamental aspects or guidelines to be followed by such a shared-value-creating management?
First, the primary goal of any management activity must e the harmonization of stakeholder value in the short, medium, and long run.
R. Edward Freeman proposes the notion of ‘harmonizing the interests of stakeholders … because harmony in music is the idea that even though the notes are different, they sound good together’
Stakeholder value harmonization
Second, such value harmonization must consider the entire complex mesh of stakeholder relations throughout management’s sphere of influence.
Third, managers must understand that connectedness and synergies among stakeholders require a holistic understanding and management of those relationships
Social Contract
In 1762 Jean Jacques Rousseau produced book on social contract
An ancient philosophical idea that states that an individual's ethical and political obligations relate to an agreement he has with every other individual within a society.
In business, social contract theory includes the obligations that businesses of all sizes owe to the communities in which they operate and to the world as a whole.
Idea for treating businesses as social contracts rises from the stakeholder theory which was developed as a result of “the rejection of the idea that the corporation should single-mindedly strive to maximize the benefits of a single stakeholder, the shareholders.
Companies cannot actively subscribe to any one ethical theory as such, because those theories would force companies to make decisions that would be bad for them.
When companies want to justify their actions, the contracts-based approaches provide the best solution. This is because the contracts-based position does not necessarily have to be perceived as being fair or equal, but it is based on what is reasonable
Social contract involves- corporate philanthropy, corporate social responsibility and corporate governance
Corporate Philanthropy
Businesses can draw on social contract theory to interact with society.
Businesses can show that they are concerned with their communities and appreciative of the revenue streams the community provides by allocating resources for community projects, by volunteering in local charities or schools, by donating products and by running environmentally friendly ad campaigns.
These things illustrate that a business is serious about its social contract and that it recognizes it’s value.
Corporate Social Responsibility
Corporate Social Responsibility is focused more narrowly on creating sustainable and renewable business solutions.
CSR functions as an internal mechanism for ensuring that ethical standards in business are always followed to prevent the business from doing anything illegal, from violating the public's trust or from unnecessarily harming the environment.
Corporate Governance
An important concept of the social theory contract in business is follow-through, or making sure that the business is holding up its end of the bargain and not just paying lip service to the community.
Corporate governance structures are policies that a company enacts to keep itself on an ethical and legal path.
Corporate governance is important for keeping corporate philanthropy, CSR and the overall social contract theory at the forefront of a business' strategy plan.
Summary
The problem is not that businesses could not operate in an ethical way, but rather that businesses have no actual motivation to operate in ways which could damage their immediate profits.
The idea of a business that knowingly acts in such a way that it does not create profit goes against the intuitive idea of business as a largely profit maximizing entity.
Naturally, there is no denial that there exist businesses whose ultimate goal is to produce a long term positive effect for the communities they operate in, but in general the goals of businesses do not tend to coincide with those of the communities.
Reference
Laasch, O., 2021. Principles of Management: Practicing Ethics, Responsibility, Sustainability. Principles of Management, pp.1-700.
Carroll, A.B. and Brown, J., 2022. Business & society: Ethics, sustainability & stakeholder management. Cengage Learning.
Thank you
