Lecture Business and society: Stakeholders, ethics, public policy (14/e): Chapter 2 - Anne Lawrence, James Weber

Chapter 2 - Managing public issues and stakeholder relationships. In this chapter, students will be able to: Evaluating public issues and their significance to the modern corporation, applying available tools or techniques to scan an organization’s multiple environments, describing the steps in the issue management process and determining how to make the process most effective,...

Managing Public Issues and Stakeholder Relationships

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Ch 2: Key Learning Objectives

modern corporation

organization’s multiple environments

determining how to make the process most effective

and the skills required to do so effectively

relationships with stakeholders through engagement,

dialogue, and network-building

Public Issues

Any issue that is of mutual concern to an organization

and one or more of its stakeholders

A mixture of people’s opinions, attitudes, and beliefs

about what constitutes reasonable business behavior

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Public Issues:

Performance-Expectations Gap

what an organization is actually doing

as possible

respond appropriately will:

backlash or missing a major business opportunity

Figure 2.1 The Performance-Expectations Gap

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Environmental Analysis

and Intelligence

A method managers use to gather information about

external issues and trends, so they can develop an

organizational strategy that minimizes threats and

takes advantage of new opportunities

The acquisition of information gained from analyzing

the multiple environments affecting organizations

Eight Strategic Radar Screens

Figure 2.2

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Competitive Intelligence

analyzing, and managing external information about the

organization’s competitors that can affect the organization’s plans, decisions and operations

information gathered through competitive intelligence,

public affairs managers must be keenly aware of these

issues

The Issue Management Process

evolve and how it will affect the organization

into account “non-quantifiable” factors like the company’s

reputation

needed

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Figure 2.3 The Issue Management Process

Organizing for Effective Issue Management

particular emerging issue often depends on the nature

of the issue itself

both the board of directors and to top management levels

three basic capabilities:

stakeholders in dialogue and partnership

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Stages in the Business-Stakeholder

Relationship

stakeholders often evolve through a series of stages

 Inactive – Companies ignore stakeholder concerns

 Reactive – companies act only when forced to do so, and then in a

defensive manner

 Proactive – Companies try to anticipate stakeholder concerns

 Interactive –Companies actively engage stakeholders in an

ongoing relationship of mutual respect, openness, and trust

Drivers of Stakeholder Engagement

one stakeholder organization is necessary, by definition,

to constitute engagement

its stakeholders both have an urgent and important goal,

the motivation to participate, and the organizational

capacity to engage with one another

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Making Engagement Work Effectively

come together for face-to-face conversations about issues

of common concern

can address effectively only by working collaboratively with other businesses and concerned persons and

organizations in stakeholder networks

bringing in expertise, enhancing legitimacy, and generating creative solutions to common problems