Description
This is a presentation describes on stakeholders, stakeholder's attributes, stakeholder relationship management.
? Stakeholders
defined ? Stakeholder identification ? Stakeholder orientation ? Stakeholder attributes
? ? ?
Power Legitimacy Urgency
? Stakeholder
Relationship Management ? Implementing a stakeholder perspective in the form of CSR
•
“The Principle of Who or What Really Counts”
? R. E. Freeman
–
Who are the stakeholders of the firm?
•
Separate stakeholders from non-stakeholders (identification)
– – – – – – – – –
Primary vs. secondary Owners vs. non-owners Owners of capital vs. owners of less tangible assets Actors vs. those acted upon Voluntary vs. non-voluntary relationship Rights holders and contractors vs. moral claimants Resource providers vs. dependents on the firm Risk takers vs. influencers Principals vs. agents
–
To whom (or what) do managers pay attention? (salience)
•
The degree to which managers give priority to competing stakeholder claims
? “Any
group or individual who can affect or is affected by the achievement of the organization’s objectives.” (Freeman, 1984). ? This way of looking at firm broadens management’s vision of its roles and responsibilities beyond the profit maximization function to include interests and claims of non-stockholding groups.
“Stakeholders are those groups on which the organization is dependent for its continued survival” Stanford Research Institute
• •
Who is a stakeholder, and what is a stake? Which groups are stakeholders deserving or requiring management attention, and which are not?
? Stockholders
are one group among many. ? Stakeholders are those groups that have a “stake in” or claim on the resources / activities of the company. ? Each has a right to be treated as a end itself not just means for enrichment of the stockholders.
•
•
Food industry and its member companies in US are facing the complex task of balancing government, parent, children, and corporate concerns. Soft drink companies in India faced a major challenge after the Centre for Science and Environment (CSE) report about the high contents of carcinogenic substance in soft drinks came.
–
Why these groups are important in today’s businesses?
? PepsiCo
gained entry to India in 1988 by creating a joint venture with the Punjab government-owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited. This joint venture marketed and sold Lehar Pepsi until 1991, when the use of foreign brands was allowed; PepsiCo bought out its partners and ended the joint venture in 1994.
? In
2003, the Centre for Science and Environment (CSE), a non-governmental organization in New Delhi, said aerated waters produced by soft drinks manufacturers in India, including multinational giants PepsiCo and The Coca-Cola Company, contained toxins, including lindane, DDT, malathion and chlorpyrifos — pesticides that can contribute to cancer, a breakdown of the immune system and cause birth defects.
? The
Coca-Cola Company and PepsiCo angrily denied allegations that their products manufactured in India contained toxin levels far above the norms permitted in the developed world. But an Indian parliamentary committee, in 2004, backed up CSE's findings and a governmentappointed committee, is now trying to develop the world's first pesticides standards for soft drinks.
? Both
companies continue to maintain that their products meet all international safety standards without yet implementing the Supreme Court ruling.Fact|date=February 2007 As of 2005, The Coca-Cola Company and PepsiCo together hold 95% market share of soft-drink sales in India.
? PepsiCo
has also been alleged to practice "water piracy" due to its role in exploitation of ground water resources resulting in scarcity of drinking water for the natives of Puthussery panchayat in the Palakkad district in Kerala, India. Local residents have been pressuring the government to close down the PepsiCo unit in the village.
? In
2006, the CSE again found that soda drinks, including both Pepsi and Coca-Cola, had high levels of pesticides in their drinks. Both PepsiCo and The Coca-Cola Company maintain that their drinks are safe for consumption and have published newspaper advertisements that say pesticide levels in their products are less than those in other foods such as tea, fruit and dairy products.
? In
the Indian state of Kerala, sale and production of Pepsi-Cola, along with other soft drinks, was banned by the state government in 2006, but this was reversed by the Kerala High Court merely a month later. Five other Indian states have announced partial bans on the drinks in schools, colleges and hospitals.
?
Continued association is absolutely necessary for a firm’s survival
?
? ? ? ? ? ?
?
Employees Customers Investors Shareholders Suppliers Government & Regulators Communities
Primary Stakeholders
Do not typically engage in transactions with a company and thus are not essential for its survival
? ? ? ?
Media Trade associations Special interest groups Competitors
Secondary Stakeholders
Investors ? Employees ? Customers
?
?Their
?
stake:
ROI
stocks, bonds, equity, etc.
?Their
? some
expectation:
?Their
? jobs,
stake:
expectation:
livelihood, career, human capital investments wages, security, benefits and meaningful work
?Their
? decent
?Their
? need
stake:
expectations:
quality goods, fair
for / purchases of products and services
?Their
? honesty,
pricing
?Their
stake:
expectation:
mutual prosperity,
? income
from goods and services
?Their
? fairness,
honesty
?Their
? the
stake:
environment, taxes, payroll, infrastructure improvements
?Their
? good
expectations:
citizenship, open partnership
?A
degree to which a firm understands and addresses stakeholder demands can be referred to as a stakeholder orientation. ? This comprises three sets of activities:
the organization-wide generation of data about stakeholder groups and assessment of the firm’s effect on these groups; ? the distribution of this information throughout the firm; and ? the organization’s responsiveness as a whole to this intelligence
?
? Stakeholders
best encourage CSR behaviour from firms when they represent rational or economic motives for the firm. ? Both external and internal stakeholders can push CSR agenda. ? Do stakeholders care enough to push their agenda? ? For CSR practices, we need empowered consumers, NGOs, media.
? These
determine the identification and salience of stakeholders in the company’s scheme of things
? ? ?
Power Legitimacy; and Urgency
? The
extent to which a stakeholder can gain access to coercive, utilitarian, or symbolic means to impose or communicate its views to the organization. ? Power may be coercive, utilitarian, or symbolic
? The
perception or belief that a stakeholder’s actions are proper, desirable, or appropriate within a given context.
? Stakeholders
exercise greater pressure on management and organizations when they stress the urgency of their claims.
? ?
Time sensitivity Importance of claim to the stakeholders
Can you serve the long term interests of the shareholders without paying attention to the others? ? The interconnectedness of wealth creation ? Long term relationships are source of wealth not individual transactions ? The key to organizational long term viability is manage the entire web of interconnected stakeholder relationships for everyone’s mutual benefit as much as possible. ? These efforts result in social capital, an asset that resides in relationships and is characterized by mutual goals and trust.
?
? Careful
?
attention to firm’s reputation and the effective handling of crisis situation.
Reputation management
?
The process of building and sustaining a company’s good name and generating positive feedback from stakeholders The process of handling a high-impact event characterized by ambiguity and the need for swift action
?
Crisis management
?
? Assessing
the corporate culture ? Identifying stakeholder groups ? Identifying stakeholder issues ? Assessing the organization’s commitment to social responsibility ? Identifying resources and determining urgency ? Gaining stakeholder feedback
doc_430378956.pptx
This is a presentation describes on stakeholders, stakeholder's attributes, stakeholder relationship management.
? Stakeholders
defined ? Stakeholder identification ? Stakeholder orientation ? Stakeholder attributes
? ? ?
Power Legitimacy Urgency
? Stakeholder
Relationship Management ? Implementing a stakeholder perspective in the form of CSR
•
“The Principle of Who or What Really Counts”
? R. E. Freeman
–
Who are the stakeholders of the firm?
•
Separate stakeholders from non-stakeholders (identification)
– – – – – – – – –
Primary vs. secondary Owners vs. non-owners Owners of capital vs. owners of less tangible assets Actors vs. those acted upon Voluntary vs. non-voluntary relationship Rights holders and contractors vs. moral claimants Resource providers vs. dependents on the firm Risk takers vs. influencers Principals vs. agents
–
To whom (or what) do managers pay attention? (salience)
•
The degree to which managers give priority to competing stakeholder claims
? “Any
group or individual who can affect or is affected by the achievement of the organization’s objectives.” (Freeman, 1984). ? This way of looking at firm broadens management’s vision of its roles and responsibilities beyond the profit maximization function to include interests and claims of non-stockholding groups.
“Stakeholders are those groups on which the organization is dependent for its continued survival” Stanford Research Institute
• •
Who is a stakeholder, and what is a stake? Which groups are stakeholders deserving or requiring management attention, and which are not?
? Stockholders
are one group among many. ? Stakeholders are those groups that have a “stake in” or claim on the resources / activities of the company. ? Each has a right to be treated as a end itself not just means for enrichment of the stockholders.
•
•
Food industry and its member companies in US are facing the complex task of balancing government, parent, children, and corporate concerns. Soft drink companies in India faced a major challenge after the Centre for Science and Environment (CSE) report about the high contents of carcinogenic substance in soft drinks came.
–
Why these groups are important in today’s businesses?
? PepsiCo
gained entry to India in 1988 by creating a joint venture with the Punjab government-owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited. This joint venture marketed and sold Lehar Pepsi until 1991, when the use of foreign brands was allowed; PepsiCo bought out its partners and ended the joint venture in 1994.
? In
2003, the Centre for Science and Environment (CSE), a non-governmental organization in New Delhi, said aerated waters produced by soft drinks manufacturers in India, including multinational giants PepsiCo and The Coca-Cola Company, contained toxins, including lindane, DDT, malathion and chlorpyrifos — pesticides that can contribute to cancer, a breakdown of the immune system and cause birth defects.
? The
Coca-Cola Company and PepsiCo angrily denied allegations that their products manufactured in India contained toxin levels far above the norms permitted in the developed world. But an Indian parliamentary committee, in 2004, backed up CSE's findings and a governmentappointed committee, is now trying to develop the world's first pesticides standards for soft drinks.
? Both
companies continue to maintain that their products meet all international safety standards without yet implementing the Supreme Court ruling.Fact|date=February 2007 As of 2005, The Coca-Cola Company and PepsiCo together hold 95% market share of soft-drink sales in India.
? PepsiCo
has also been alleged to practice "water piracy" due to its role in exploitation of ground water resources resulting in scarcity of drinking water for the natives of Puthussery panchayat in the Palakkad district in Kerala, India. Local residents have been pressuring the government to close down the PepsiCo unit in the village.
? In
2006, the CSE again found that soda drinks, including both Pepsi and Coca-Cola, had high levels of pesticides in their drinks. Both PepsiCo and The Coca-Cola Company maintain that their drinks are safe for consumption and have published newspaper advertisements that say pesticide levels in their products are less than those in other foods such as tea, fruit and dairy products.
? In
the Indian state of Kerala, sale and production of Pepsi-Cola, along with other soft drinks, was banned by the state government in 2006, but this was reversed by the Kerala High Court merely a month later. Five other Indian states have announced partial bans on the drinks in schools, colleges and hospitals.
?
Continued association is absolutely necessary for a firm’s survival
?
? ? ? ? ? ?
?
Employees Customers Investors Shareholders Suppliers Government & Regulators Communities
Primary Stakeholders
Do not typically engage in transactions with a company and thus are not essential for its survival
? ? ? ?
Media Trade associations Special interest groups Competitors
Secondary Stakeholders
Investors ? Employees ? Customers
?
?Their
?
stake:
ROI
stocks, bonds, equity, etc.
?Their
? some
expectation:
?Their
? jobs,
stake:
expectation:
livelihood, career, human capital investments wages, security, benefits and meaningful work
?Their
? decent
?Their
? need
stake:
expectations:
quality goods, fair
for / purchases of products and services
?Their
? honesty,
pricing
?Their
stake:
expectation:
mutual prosperity,
? income
from goods and services
?Their
? fairness,
honesty
?Their
? the
stake:
environment, taxes, payroll, infrastructure improvements
?Their
? good
expectations:
citizenship, open partnership
?A
degree to which a firm understands and addresses stakeholder demands can be referred to as a stakeholder orientation. ? This comprises three sets of activities:
the organization-wide generation of data about stakeholder groups and assessment of the firm’s effect on these groups; ? the distribution of this information throughout the firm; and ? the organization’s responsiveness as a whole to this intelligence
?
? Stakeholders
best encourage CSR behaviour from firms when they represent rational or economic motives for the firm. ? Both external and internal stakeholders can push CSR agenda. ? Do stakeholders care enough to push their agenda? ? For CSR practices, we need empowered consumers, NGOs, media.
? These
determine the identification and salience of stakeholders in the company’s scheme of things
? ? ?
Power Legitimacy; and Urgency
? The
extent to which a stakeholder can gain access to coercive, utilitarian, or symbolic means to impose or communicate its views to the organization. ? Power may be coercive, utilitarian, or symbolic
? The
perception or belief that a stakeholder’s actions are proper, desirable, or appropriate within a given context.
? Stakeholders
exercise greater pressure on management and organizations when they stress the urgency of their claims.
? ?
Time sensitivity Importance of claim to the stakeholders
Can you serve the long term interests of the shareholders without paying attention to the others? ? The interconnectedness of wealth creation ? Long term relationships are source of wealth not individual transactions ? The key to organizational long term viability is manage the entire web of interconnected stakeholder relationships for everyone’s mutual benefit as much as possible. ? These efforts result in social capital, an asset that resides in relationships and is characterized by mutual goals and trust.
?
? Careful
?
attention to firm’s reputation and the effective handling of crisis situation.
Reputation management
?
The process of building and sustaining a company’s good name and generating positive feedback from stakeholders The process of handling a high-impact event characterized by ambiguity and the need for swift action
?
Crisis management
?
? Assessing
the corporate culture ? Identifying stakeholder groups ? Identifying stakeholder issues ? Assessing the organization’s commitment to social responsibility ? Identifying resources and determining urgency ? Gaining stakeholder feedback
doc_430378956.pptx