Chapter 2 – Stakeholders

and Issues Management

Approaches

By:

Sarah Obaidee

Joseph Olivas

Meghedi Dirghazarianmalhami
 What is a stakeholder?

Individual or group that affects all
aspects of decision making in an
organization.

Primary stakeholders are
individuals immediately affected by
the organization. i.e. suppliers,
owners, employees, etc.

Secondary stakeholders include a
variety of interest groups. i.e.
media, lobbyist, etc.
What is a stake?

A stake is any interest, share, or claim that a group or
individual has in the outcome of a corporation’
policies, procedures, or actions towards others.

Stakes of being a student at Woodbury University?

Interest?

Education,…..?
Stakeholder’s Approach

Theory that preaches ethical
behavior in order to gain a
competitive advantage. Lowes

Strives to reach “win-win”
outcomes.

Companies that practice this
theory in their industry tend to get Home
a leg up on their competitor. i.e.
Lowes v Home Depot. Depot
Stakeholder Analysis

Assist in the understanding between an organization and
its constituents.

Due to the uniqueness of each situation, the approach
must be mapped out in order to develop a strategy.

The framework is developed not only for individuals in
high ranking positions, but also so any employee may see
the corporate dealings.
Role of the CEO in
Stakeholder Analysis

The role of a CEO is to get a handle of the situation to help
approach and mediate concerns from customers, media, etc.

CEO is there to answer the who, what, where, why,
when, and how of the situation
Stakeholder Analysis in 7 Steps

1. Map stakeholder relationships

2. Map stakeholder coalitions
3. Assess the nature of each stakeholder’s interest
4. Assess the nature of each stakeholder’s power
5. Construct a matrix of stakeholder moral responsibilities
6. Develop specific strategies and tactics
7. Monitor shifting coalitions
 Stakeholder Dispute Resolution
Methods

Dispute resolution is a tactic also known as “alternative
dispute resolution”

Dispute resolution is a variety of methods to help
possible litigants resolve conflicts

Ranges from parties taking control of process to
giving control to a third party
 i.e. face to face negotiation and litigation
 Ethical Reasoning for
Stakeholders

Ethical reasoning involves trying to analyze what is fair
and who is being affected by the actions.

Involves helping and identifying the weaker and quiet
stakeholders getting their voices heard in the decision
process

What can be done when stakeholder are not being
treated fairly?
 Moral Responsibilities

The analysis ensures that managers are prepared to define their
own moral responsibilities, as well as those of the company.

The approach focuses the organization’s attention on both
internal and external areas.

Managers are liable for the morals of the company, that can
quickly be made public due to technology.

If a stakeholder knows the roles, it clarifies the responsibilities of
the task.
Issue Management

Issue management is used to
forecast the actions to take for
emerging factors that have an impact
on organizations and stakeholders.

Controversy can be avoided if proper
issue management is implemented.

The evolution of an issue can be
traced with proper issue
management.
Moral Dimension of Stakeholder and
Issue Management

Studies argue that being moral is “issue dependent”

They argue that the severity of the issue is what
triggers reasoning.

Morals are necessary in leadership positions, as
the decisions affect all stakeholders.

Identifying issues and ensuring that they are moral is a
goal for all managers to benefit their company.
The Two Frameworks

Frameworks can be used to map
and manage issues before they
arise.

Frameworks can also be used to
plan and manage to prevent, or
to handle issues that may have
already arisen.

Frameworks are not organization
specific

Stakeholder analysis can display
why strategies and actions stunt
the evolution of an organization.
First Approach

The six-step issue management process.

Environmental scanning and issues identification.

Issue analysis

Issue ranking prioritizing

Issue resolution strategizing

Issue response and implementation

Issue evaluation and monitoring
.
 Felt
Need

Second Step

Seven-phase issue
development process. Media
Litigation

Coverage

A felt need arises


Media coverage is deployed

Interest group development

Policies are adopted by
leading political jurisdictions
 Legislation
The federal government
Interest Group
Development and
and Growth Regulation
gives attention to the issue.

Issues and policies evolve
into legislation and
regulation

Issues and policies enter
litigation. Leading
Political
Jurisdictions
Federal
Government
Attention
Managing Crises

Crisis management emerged from observing how
corporations and leaders react to crises.

Steven Fink describes crisis as “a turning point for better
or worse.”

The direction that organization moves into is dependent
on the leaders’ reaction.
Four Crisis Management Stages

Pre-crisis

Prodromal stage

Warming; symptoms

Crisis Occurs

Acute stage

Point of no return

Lingering

Chronic stage

Self-doubt, self-analysis

Health restored

Conflict resolution stage
 Return to normalcy
First Stage

Prodromal Stage

Warning stage

Does not always occur or is not evident.

This stage should be carefully observed.

Must be taken seriously in order to prevent crisis.

If does not occur, or is ignored, the point of no return
quickly occurs.
Second Stage

Acute Crisis

Damage has already occurred

Damage control must be administered

Stage where the severe damage occurs

Considered the shortest stage
Third Stage

Chronic crisis

Clean up phase


Time of healing,
recovery ,and self analysis

Studies have shown when
there is no crisis plan set
companies stay in this
phase 2.5 time longer
Fourth Stage

Crisis Resolution

Final stage – Crisis Management Goal


“What can and should an organization do to speed up
this phase and resolve crisis once and for all?”
How Executives Have
Responded to Crisis?

Five phases of corporate social response to crises

Used to evaluate and examine moral responsibilities of
corporate response
1. Reaction
2. Defense
3. Insight
4. Accommodation
5. Agency
Any Questions?