Contents: Origins of the Stakeholder Concept, Who Are Business’s Stakeholders?, Stakeholder Approaches, Three Values of the Stakeholder Model, Key Questions in Stakeholder Management, Effective Stakeholder Management, Developing a Stakeholder Culture, Stakeholder Management Capability, The Stakeholder Corporation.
Trang 1© 2015 Cengage Learning
Trang 2Chapter 3
The Stakeholder Approach to
Business, Society, and
Ethics
Trang 3Learning Outcomes
1 Define stake and stakeholder, and describe the
origins of these concepts.
2 Differentiate among the production, managerial, and
stakeholder views of the firm.
3 Differentiate among the three values of the
stakeholder model.
4 Expound upon the concept of stakeholder
management.
5 Identify and describe the five major questions that
capture the essence of stakeholder management.
6 Identify the three levels of stakeholder management
capability (SMC).
7 Describe the key principles of stakeholder
management
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Trang 4• Origins of the Stakeholder Concept
• Who Are Business’s Stakeholders?
• Stakeholder Approaches
• Three Values of the Stakeholder Model
• Key Questions in Stakeholder Management
• Effective Stakeholder Management
• Developing a Stakeholder Culture
• Stakeholder Management Capability
• The Stakeholder Corporation
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Chapter Outline (1 of 2)
Trang 5• Principles of Stakeholder Management
• Strategic Steps Toward Global Stakeholder
Trang 6Origins of the Stakeholder
Concept
Stake -
•An interest or a share in an undertaking
Can be categorized as:
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An Interest A Right Ownership
Legal Right
Moral Right
Trang 7Stakeholder
-•Any individual or group who can affect
or is affected by the actions, decisions, policies, practices, or goals of the
Trang 8Who are Business’s
Stakeholders?
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Business Stakeholder Groups
Media Suppliers Special-Interest
Groups Society General Public
Competitors Customers Community
Stockholders Employees
Trang 9Three Views of the Firm
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Trang 10Production and Managerial
Views
of the Firm (fig 3-2 slightly different)
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Trang 11Stakeholder View of the Firm
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Trang 12Primary & Secondary
Trang 13managers Civic institutions
Customers Social pressure groups Local communities Media and academic
commentators Suppliers and other
business partners Trade bodies
Competitors
Trang 14Nonsocial Stakeholders
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Primary nonsocial
stakeholders Secondary nonsocial stakeholders
Natural environment Environmental interest
groups Future generations Animal welfare
organizations Nonhuman species
Trang 15A Typology of Stakeholder
Attributes
Legitimacy
-•Refers to the perceived validity or
appropriateness of the stakeholder’s claim to a stake.
Trang 16Stakeholder Typology
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Trang 17Stakeholder Approaches
Strategic approach
-•Views stakeholders primarily as factors
managers should manage in pursuit of
shareholder profits.
Multifiduciary approach
-•Views stakeholders as a group to which
management has a fiduciary responsibility.
Stakeholder synthesis approach
-•Considers stakeholders as a group to whom management owes an ethical, but not a
fiduciary, obligation.
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Trang 18Three Values
of the Stakeholder Model
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Trang 19Key Questions in Stakeholder Management
1 Who are our organization’s
stakeholders?
2 What are our stakeholders’ stakes?
3 What opportunities and challenges do
our stakeholders present to the firm?
4 What responsibilities (economic, legal,
ethical, and philanthropic) does the
firm have to its stakeholders?
5 What strategies or actions should the
firm take to best address stakeholder challenges and opportunities?
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Trang 20© 2015 Cengage Learning 20
Trang 21Who Are Our Stakeholders?
21
© 2015 Cengage Learning
Trang 22What Are Our Stakeholders’ Stakes?
To identify them, consider -
•the nature and legitimacy of a group’s stakes
•the power of a group’s stakes
•Sub-groups within a generic group
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Trang 23What Opportunities and
Challenges do Stakeholders
Present?
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© 2015 Cengage Learning
Trang 24What Responsibilities Does
a Firm Have to its Stakeholders?
Apply Corporate Social
Trang 25The Stakeholder Responsibility
Matrix
25
© 2015 Cengage Learning
Trang 26What Strategies or Actions Should Management Take?
• Do we deal directly or indirectly with
stakeholders?
• Do we take the offense or the defense
in dealing with stakeholders?
• Do we accommodate, negotiate,
manipulate, or resist stakeholder
overtures?
• Do we employ a combination of the
above strategies or pursue a singular course of action?
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Trang 27Four Stakeholder Types -
1 The Supportive Stakeholder
• High potential for cooperation, low for threat
1 The Marginal Stakeholder
• Low potential for cooperation and threat
1 The Nonsupportive Stakeholder
• High potential for threat, low for cooperation
1 The Mixed-Blessing Stakeholder
• High on potential for threat & cooperation
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Trang 28Effective Stakeholder Management
Stakeholder thinking -
•The process of always reasoning in
stakeholder terms throughout the
management process.
•Increases the complexity of
decision-making, but most consistent with today’s
business environment.
•Is facilitated by
• Stakeholder culture
• Stakeholder management capability
• Stakeholder corporation model
• Principles of stakeholder management
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Trang 29Developing a Stakeholder
Culture
29
Moralist Altruist Instrumentalist
Corporate egoist Agency
Little concern
for stakeholders
Great concern for stakeholders
Stakeholder Culture embraces the believes, values and
practices that organizations have developed for addressing stakeholder issues and relationships
© 2015 Cengage Learning
Trang 31Stakeholder Engagement -
• An approach by which companies
successfully implement the transactional level of strategic management capability.
integrated into every level of
decision-making in the organization
• A ladder of stakeholder engagement
depicts a continuum from low
engagement to high engagement.
corporation
engaging stakeholders.
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Trang 32most important determinants of success
In the future, development of loyal relationships with customers, employees, shareholders, and other stakeholders will become one of the
most important determinants of success
The central element:
Stakeholder inclusiveness The central element:
Stakeholder inclusiveness
Trang 33The “Clarkson Principles” of
Stakeholder Management
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© 2015 Cengage Learning
Trang 34Strategic Steps Toward Global
Stakeholder Management
34
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Trang 36© 2015 Cengage Learning 36
Key Terms (1 of 2)
• Clarkson principles
• descriptive value (of stakeholder model)
• instrumental value (of stakeholder model)
• key questions (in stakeholder management)
• primary social Stakeholders
• principles of stakeholder Management
• process level
• production view of the firm
• proximity
Trang 37• stakeholder view of the firm
• strategic approach (to stakeholders)
• synthesis approach (to stakeholders)
• transactional level
• urgency