University of Technology, Jamaica

School of Business Administration

Business Ethics
2011-12

Stakeholder Analysis

Stake: any interest, share or claim that a group has in the outcome of a corporation policies, procedures
or actions
Stakeholder: any individual or group who can affect or is affected by the action, decisions, policies and
practices or goals of an organization

Purpose for Stakeholder analysis

 Includes the moral, political, legal, technological interests and economic factors that affect
organisations and individuals
 Gives the ethical imperative that mandates businesses to act in the best interest of and for the
benefit of their customers
 Provides the framework that enables mapping and management or corporation relationships with
groups to teach ‘win-win” collaborative outcomes

Types of stakeholders:
Focal – company or group that is at the center or focus of the analysis
Primary – include owners, suppliers, customers, employees
Secondary – include all other interested groups such as the media, consumers, lobbyists, courts,
government competitors, the public and society

Stakeholder analysis:
i. Identify affected parties – the Consequentialist: will identify all stakeholders who are going to
experience harm or benefits; deontologist: will want to know whose rights are involved and who
has a duty to act in the circumstances
ii. Role play – what decision would be reached if you were in another’s shoes; the Golden Rule: treat
others as you would like others to treat you
iii. Map relationships – identify individuals who are most knowledgeable, current and close to the
issue at hand and develop reliable information about stakeholders
iv. Map coalitions – determine common interests surrounding specific issues or incidents
v. Assess interest – identify the supporters and opposers (can disrupt, deepen or damage
organisational operation and image
vi. Assess social power – who has voting, political and economic power as who responds to issues is
critical
vii. Map moral responsibilities – it determines a strategy for action for each group of stakeholders
viii. Develop specific strategies and tactics – decisions need to be made about approach: direct,
indirect, do nothing, monitor, take offensive or defensive action so that “win-win” situation can
result
ix. Monitor coalitions – how are the issues evolving? Are the strategies working? What are the
effects/affects of the media, exposure, politics, economics, legal action and public reaction?

The stakeholder analysis provides a rational systemic process for understanding economic, political and
social issues involved in complex relationships between organisations and its constituents.