Stakeholder Analysis Paper
ghtyui52000
PrioritizingStakeholders.ppt.pptxQuiz #1
Briefly explain how Walmart has mismanaged or mistreated 3 different groups of its stakeholders.
2. Briefly explain how Costco has taken a different approach than Walmart with these 3 different groups of stakeholders.
Issues Management
Crisis Management
Media Relations
Public Relations
Public Affairs Management
Stakeholder Management
Analyzing & Prioritizing Stakeholders
Reactive,
Non-strategic
Proactive,Strategic
Issues Management
Crisis Management
Media Relations
Public Relations
Public Affairs Management
Has been compared to a window where, looking out,
the company can observe the changing environment
and, looking in, the stakeholders in that environment
can interact with and understand the company…
An Issue:
Any event, trend, controversy, or public policy
development that might affect the corporation.
A gap between stakeholder expectations and the
actual performance of a business.
immigration
use of personal information
genetically modified foods
economic inequality
concussions in sports
public stance on social issues
media interest
public
attention
-time-
early
late
trigger event
legislation
activists involved
social expectation
public
concern
social
control
issue dies
resolved
re-emerges
Issue Life Cycle
Step 1: Identify stakeholder issues.
Step 2: Analyze & prioritize the issues.
Step 3: Plan response to the issue
Step 4: Evaluate and monitor results.
Issues Management
Crisis Management
Crisis: a decisive event that, handled incorrectly, has potential for negative repercussions for stakeholders
Characterized by surprise, lack of information, escalating pace, intense scrutiny
Stem from internal or external events
4 Stages: Prodromal, Acute crisis, Chronic crisis, Crisis resolution
Preparation: action plan, crisis team, simulation, media guidelines, crisis audit
Media Relations
Image management
Reputation management
Multiple means to “frame” the company’s position:
press releases, advertising, newsletters, reports
General media relationships
reporters know and trust company
Corporate Community Relation Strategies
Build relations
Identify issues and concerns
Design appropriate programs that create shared value
Communities of Interest
Site Communities
Employee communities
Fenceline communities
Impact communities
Cyber Communities
Common interest communities
Community Relations
What Do Stakeholders Want?
Accessibility
Respect for stakeholders’ time
Forthrightness and honesty
Welcome and warmth
Accommodation and reasonableness
Few errors and defects, with quick fixes if they occur
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different stakeholders make different demands on business
employees want stable employment & fair pay
owners want satisfactory ROI and stock appreciation over time
customers want value & quality for dollar spent
suppliers want regular orders for goods & prompt pay
competitors want to gain market share and see industry grow
community wants to employ local residents, develop land, and protect environment
media wants to keep public informed about health & well-being
social activists want to monitor company actions and ensure that they comply with ethical and legal standards
government wants to raise revenue through taxes and promote economic development
general public wants to protect societal values and minimize risks, achieve prosperity
reciprocal duties exist among business's stakeholders (if business is to act responsibly, consumers have an obligation to make consumption choices based on social responsibility, and employees must make career choices in a responsible fashion) – arrows in BOTH directions
Stakeholder Analysis
Who are our stakeholders and what are their stakes (interest, right, ownership)?
What relationship does each stakeholder have with other stakeholders in the situation, dependent on and independent of our firm?
What attributes (legitimacy, urgency, power) does each stakeholders hold?
What economic, legal, ethical, and philanthropic responsibilities does our firm have to each stakeholder?
What actions (collaborate, involve, monitor, defend) should our firm take to best manage our stakeholders and resolve the situation?
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different stakeholders make different demands on business
employees want stable employment & fair pay
owners want satisfactory ROI and stock appreciation over time
customers want value & quality for dollar spent
suppliers want regular orders for goods & prompt pay
competitors want to gain market share and see industry grow
community wants to employ local residents, develop land, and protect environment
media wants to keep public informed about health & well-being
social activists want to monitor company actions and ensure that they comply with ethical and legal standards
government wants to raise revenue through taxes and promote economic development
general public wants to protect societal values and minimize risks, achieve prosperity
reciprocal duties exist among business's stakeholders (if business is to act responsibly, consumers have an obligation to make consumption choices based on social responsibility, and employees must make career choices in a responsible fashion) – arrows in BOTH directions
Stakeholder Model
Owners/
Shareholders
Customers
Employees
Suppliers
Global Village
Interest
Groups
Competitors
Natural
Environment
Government
Unions
Communities
Media
Stakeholders Have Relationships
Owners/
Shareholders
Customers
Employees
Suppliers
Global Village
Interest
Groups
Competitors
Natural
Environment
Government
Unions
Communities
Media
Company
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
Typology of Stakeholder Attributes
Dormant Stakeholders - Possess power to impose their will through coercive, utilitarian or symbolic means, but have little or no interaction/involvement as they lack legitimacy or urgency.
Discretionary Stakeholders - Likely to be recipients of corporate philanthropy. No pressure on managers to engage with this group, but they may choose to do so.
Demanding Stakeholders - Those with urgent claims, but no legitimacy or power. Irritants for management, but viewed as not worth considering. People with unjustified grudges, serial complainers or low return customers.
Dominant Stakeholders - Likely to have a formal mechanism in place acknowledging the relationship with the organization or project e.g. Boards of Directors, HR department, public relations.
Dangerous Stakeholders – Those with powerful and urgent claims will be coercive and possibly violent. For example, employee sabotage or coercive/unlawful tactics used by activists.
Dependent Stakeholders – Stakeholders who lack the power to enforce their stake. For example, animals impacted by the BP oil spill. Advocacy of their interests by dominant stakeholders can make them definitive.
Definitive Stakeholders - An expectant stakeholder who gains the relevant missing attribute. Often dominant stakeholders with an urgent issue, or dependent groups with powerful legal support.
What moral responsibilities does the firm have to each of its stakeholders?
Philanthropic Responsibilities Be a good corporate citizen.
Ethical Responsibilities Be ethical.
Legal Responsibilities Obey the law.
Economic Responsibilities Be profitable.
Stakeholder Strategies
Stakeholder Type 4 Mixed Blessing
Strategy: Collaborate
Stakeholder Type 3 Nonsupportive
Strategy: Defend
Stakeholder Type 1 Supportive
Strategy: Involve
Stakeholder Type 2 Marginal
Strategy: Monitor
High
Low
Cooperate with Organization?
High
Low
Threat to Organization?
Stakeholder Management vs. Collaborate/Involve
Customer: customer service department vs.
customer involvement in product testing
Government: campaign contributions vs.
joint effort to reduce pollution
Community: community relations office vs.
joint urban renewal program
Unions: hiring of professional negotiators vs.
joint committees on employee issues
Sunoco’s Marcus Hook Facility
http://www.dep.state.pa.us/dep/deputate/minres/oilgas/2011PermitDrilledmaps.htm
5
Department of Environmental Protection Bureau of Oil and Gas Management Marcellus Shale Formation
9
The Issues
Mariner 1 project reuses existing pipes
Much of the pipe dates from 1932 – 82 years old
Pressure to increase pressure from 800 to approximately 1,500 psi
18 new pump stations and 17 valve control stations
Scheduled for use for middle of 2015 for 70,00 barrels/day pure propane
No financial benefit to impacted communities, as 90% committed to shippers
Mariner 2 announced and has committed shippers
Official filings with the DEP as of April 2015
Increased demands for infrastructure buildup in the southeastern PA region
Scheduled to carry 275,000 barrels/day pure liquid ethane by 2016
http://www.philly.com/philly/business/281752211.html
https://www.cbs.com/shows/cbs_this_morning/video/_dPAeYpdIsOG9qlriIiSRCBJnKrG1Nz8/worried-residents-say-new-pennsylvania-pipeline-is-not-worth-the-risk /
20
Chester County Pipeline Congestion
Sunoco Facility
The Issues
Sunoco proposes a pump station in a residential zoned district that is highly populated
Plan to construct a building to house the pumping equipment
Purpose is to protect machinery
Reduce noise
The facility will have a 30 foot combustion unit
Residents told flare will operate sporadically; actual proposal is 24/7
Also used for maintenance purposes
Local zoning versus Public Utility Commission (PUC)
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h tt p : / / www . s u n o c o l o g i s t ics . c o m * Sunoco’s 3rd quarter earnings call * West Goshen Township zoning hearing
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19
1
0.45%
3
1.36%
6
2.71%
9
4.07%
27
12.22%
74
33.48%
101
45.71%
Pipeline Incidents Since 2006
1-All Other Causes .45% (unspecified)
3-Outside force damage 1.36% (intentional)
6-Natural force damage 2.71%
(temp, flood, earth, unspecified)
9-Excavation damage 4.07% (3rd party)
27-Incorrect operation 12.22% (installation, overfill, overpressure)
74-Material/Equipment Failure 33.48% (construction, welds, pumps, malfunction)
101-Corrosion 45.71% (internal/external)
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Corrosion
Material Failures
Board/
Shareholders
Customers
Employees
Pipeline
Builders &
Suppliers
Legal Advocates
Advocacy
Groups
Natural Gas
Producer Groups
Natural
Environment
Local
Governments
Federal
Government
Community
Groups
Media
Stakeholder Challenge 2015
Pipeline
Safety Groups
State
Government
State
Legislators
Farmers/
Agriculture
Sunoco Logistics Board & Shareholders Sunoco Logistics Employees
Marshall McCrea III, Chairman of Board of Directors Jeffrey Shields, Communications Manager
Michael Hennigan, CEO; Hank Alexander, VP Joe McGinn, Public Affairs; Don Zoladkiewicz, Health & Safety Manager
Local Governments State Government Agencies
West Goshen, Upper Uwchlan, Westtown, East Goshen, West Whiteland, etc. PA Public Utilities Commission (PA PUC
Chester County Commissioner, Kathi Cozzone PA Department of Environmental Protection (PA DEP)
Federation of Northern Chester County PA Department of Conservation and Natural Resources
Federal Government Agencies Pipeline Builders & Suppliers
Federal Energy Regulatory Commission (FERC) Steamfitters Local 420
Environmental Protection Agency (EPA) Keen Compressed Gas Company
US DoT Pipeline and Hazardous Materials Safety Administration (PHMSA) Schramm, Inc.
Natural Gas Producer Groups Sunoco Logistics Customers
Pennsylvania Independent Oil and Gas Association (PIOGA) Norwegian Government
Energy Association of PA Natural Gas Producers
Advocacy Groups Community Groups
Philadelphia Chamber of Commerce, Rob Wonderling 3cCoalition, Tom Casey
Chester County Chamber of Commerce, Guy Ciarrocchi Concerned Citizens of West Goshen Township, Allen Feinberg
Greater Philadelphia Energy Action Team, Phil Rinaldi
Media Natural Environment Groups
Philly Inquirer, Andy Maykuth Delaware Riverkeeper Network, Maya Van Rossum
WHYY, Katie Colaneri, Susan Phillips Clean Air Council, Sam Koplinka-Loehr
NBC 10 Newa, Chris Cato Brandywine Conservancy, Teddy Price
Daily Local, West Chester, PA PennEnvironment
Pipeline Safety Groups State Legislators - Chester County
Pipeline Safety Coalition, Lynda Farrell Senators Pileggi, Dinneman, Rafferty
Chester County Planning Commission, Pipeline Information Center, Carol Stauffer Representatives Corbin, Truitt, Ross
Farmers/Agriculture Sunoco Logistics Legal Advocates
Bare Foot Organics, Phil Stober Blank Rome, Michael Krancer, Partner & Chair, Energy Industry Team
Birchrun Hills Farm, Ken Miller
Board/
Shareholders
Customers
Employees
Pipeline
Builders &
Suppliers
Legal Advocates
Advocacy
Groups
Natural Gas
Producer Groups
Natural
Environment
Local
Governments
Federal
Government
Community
Groups
Media
Stakeholder Challenge 2015
Pipeline
Safety Groups
State
Government
State
Legislators
Farmers/
Agriculture
Stakeholder Relationships
Natural Environment
Sunoco Legal Advocates
Sunoco Logistics Employees
Pipeline Safety Groups
Pipeline Safety Groups
Natural Gas Suppliers
Customers
Natural Environment
Natural Environment
Community Groups
Local & State Gov’t
Advocacy Groups
Stakeholder Attributes
Federal Agencies
Power
Denial of applications
Legal
Laws
Regulations
Urgency
Requires approval
Cannot delay
Cannot ignore
Definitive Stakeholder
Mandated by Executive branch of gov’t
Laws
Regulations
Legitimacy
Economic impact $4.2 billion, $100-150m annually
Maintain accurate business records, financial reporting and internal quality control
Ensure their actions are environmentally friendly
Ensure safe and secure operations
Accountability with regards to bribes, gifts, and favors
Sunoco’s Responsibilities
Philanthropic
Ethical
Legal
Economic
INVOLVE the Government
| Collaborate | Involve |
| Defend | Monitor |
High
High
Low
Low
Cooperate?
Threatening?
Work with govt to better follow the guidelines
Put in safety precautions
Get the right approvals
Regular safety check-ups
Open forum with the agencies
https:// www.cnbc.com/2018/09/05/heres-nikes-full-ad-featuring-colin-kaepernick-and-other-athletes.html
Nike Stakeholders
Owners/
Shareholders
Customers
Employees
Suppliers
Global Village
Interest
Groups
Competitors
Natural
Environment
Government
Unions
Communities
Media
