9 stakeholder addedum

8/18/2019 9 Stakeholder Addedum

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Business and Global Society

HULT INTERNATIONAL BUSINESS SCHOOLMBA Class 2: Socio Econo!ic Syste!s:

Sta"e#olde$s% Institutions and Go&e$nanceA''EN'UM: STA(EHOL'ERS)$o*esso$ +oanne La,$ence

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• -#at is co$.o$ate /o&e$nance0

• -#o 1/o&e$ns co$.o$ations0

• -#y ,ould /o&e$nance !atte$0

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From Government to GovernanceManagement Systems


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•Corporate governance is the system by which companies are and managed .

• It in3uences #o, t#e ob4ecti&es o* t#e co!.any a$e set and a#o, $is" is !onito$ed and assessed% and #o, .e$*o$!ance iso.ti!ised5

• T#ey encou$a/e co!.anies to c$eate &alue 6t#$ou/# ent$e.$einno&ation% de&elo.!ent and e7.lo$ation8 and .$o&ide accounand cont$ol syste!s co!!ensu$ate ,it# t#e $is"s in&ol&ed5

• T#ey de9ne #o, t#e acto$s enco!.assed by it conduct t#e!sel&eeac# ot#e$

• ASX Principles of Good Corporate Governance and Best Practices Recommendations 2!!" as #$oted on %ttp&''corpgov(net'li)rary'corporate*governance*de+n

"

Corporate Governance System

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-HAT IS A STA(EHOL'ER0

Ho, ,ould you defne t#e!

#tt.s:,,,5youtube5co!,atc#0&;bIRUaLc&)e


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• G$ou.s o$ indi&idual on ,#ic# an o$/anisation de.endent *o$ its continued su$&i&al 3Stanford Resear4nstit$te 156"7

• Constituents ,#o #a&e a le/iti!ate clai! on t#9$! 3/ill 8 9ones 15527

• >olunta$y sta"e#olde$s bea$ so!e *o$! o* $is"as a $esult o* #a&in/ in&ested so!e *o$! o*ca.ital% #u!an o$ 9nancial% so!et#in/ o* &alue

in a 9$!5 In&olunta$y sta"e#olde$s a$e .laced a$is" as a $esult o* a 9$!s acti&ities5 But ,it#out#e ele!ent o* $is"% t#e$e is no sta"e5 3Clar:son 15

• Any /$ou. o$ indi&idual ,#o can a?ect o$ isa?ected by ac#ie&e!ent o* a 9$!s ob4ecti&es6=$ee!an% @


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•


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@5'ESCRI)TI>E:Co$.o$ation as constellation o*coo.e$ati&e% co!.etiti&e inte$ests eac# ,it# int$insic&alue5

25 INSTRUMENTAL: Sta"e#olde$ !ana/e!ent andac#ie&e!ent o* co$.o$ate .e$*o$!ance /oals connecte

D5 NORMATI>E: Sta"e#olde$s #a&e int$insic &alue in an

t#e!sel&es% and not !e$ely *o$ t#ei$ ability to *u$t#e$inte$ests o* anot#e$ /$ou.5

5 MANAGERIAL: Not si!.ly desc$i.ti&e o* situations o$elations#i.s% but $eco!!ends attitudes% st$uctu$es a.$actices t#at to/et#e$ constitute sta"e#olde$

!ana/e!ent5

Sta"e#olde$ )e$s.ecti&es


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National Cultu$es Re3ect a)e$s.ecti&e: 6i5e5% St$uctu$e'ete$!ines Be#a&io$8

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• Ca.italis! 6=$ee Ma$"et8

• 1Social Ca.italist

• Socialis!

• State O,ned Ca.italis! 6SOC8• Co$.o$ations

• =a!ilyO,ned Businesses

• )$i&atelyHeld Businesses

Econo!ic% Business Models Re3ect a )e$s.ect

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-#ats -$on/ -it# T#is )ictu$e0

THECOR)ORATIO

N

S$pply C%ainAssociates

Governments .mployees

4nvestorsS%are%oldersand 0enders

C$stomersand $sers

Dnions

Reg$latoryA$t%orities

9E Partnersand Alliances

Private,rganisations

0ocal Comm$nitiesand Citiens

So$rce& Managing t%e .@tended .nterprise=Post et a1!


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Syste!s >ie,:Inte$connected%Inte$de.endent% In3uential

e!.loyees

Local /o&e$n!ent

s#a$e#olde$scomm$nities

su..lie$s

Custo!e$s

Mana/e$s

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Media

Partners


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? = a net,o$" o* interrelated sta"e#olde$c$eate% sustain% and en#ance its &aluec$eaca.acity

6a co!.anys8 lon/ te$! su$&i&al and sucis dete$!ined by its ability to establis# and!aintain $elations#i.s ,it#in its enti$e neto* sta"e#olde$s55F

Post et al

T#e E7tended Ente$.$ise:A Syste! o* Sta"e#olde$s

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Sta"e#olde$s C$eate a Co!.le7 >alue 1-e

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0ocal COR)ORATION

Go&e$n!ents

Su..ly C#ain Associates

+> )a$tne$s and Alliances

LocalCo!!unitie

sandCitiens

Unions

E!.loyee

s

In&esto$sS#a$e#olde$s andLende$s

Custo!e$s and

Use$s

Re/ulato$y

Aut#o$ities

)O

RESOURCEBASE

IN'USTRSTRUCTURE

SOCIAL )OLITICAL ARENA

So$rce& Managin.nterprise((( Pos


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• B) and 'ee.,ate$ : in t#e inte$est o* s#a$e#olde$ &alue% dest$oyed

• A&e$a/e =o$tune JJ co$.o$ate li*es.an is @ yea$s today co!.a$edyea$s in t#e .ast5 T#e nu!be$ #as declined *$o!


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S#i*tin/ E!.o,e$!ent55

Globalisation )#aseI

E!.o,e$edco$.o$ations

Globalisation )#ase II

E!.o,e$edsta"e#olde$s

E!.o,e$ed

Consu!e$s

E!.o,e$ed NGOs

E!.o,e$d Media

So$rce&ert%er and C%andler Strategic CS1


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Sta:e%olders > Motivations

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? -%e capacity of a +rm to generate s$staina)le Hover time is determined )y its relations%ip Hit% csta:e%olders=(

The ability to manage relationships, and todevelop and implement policies + practices

take into account goals and concerns o allrelevant stakeholders is a core managemencompetence..”

• Post Preston > Sac%s ?Managing t%e .@tended .nterprise

Ne, Co!.etency: Sta"e#olde$Mana/e!ent

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• Ho, ,ould you /o about !a"in/ decisions

,#en sta"e#olde$s ,it# &a$yin/ needs and.e$#a.s con3ictin/ needs a$e in&ol&ed0

• Ho, do you identi*y and .$io$itie t#esesta"e#olde$s $elati&e to t#e /oal% &ie,in/t#e! #olistically and as a inte$connected0

• Ho, do you c$eate a st$uctu$e t#at .$o&ide*eedbac" loo.s% and on/oin/ en/a/e!ent ensu$e on/oin/ ali/n!ent0

Ho, To Mana/e Relations#i.s0

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• -#at is it ,e a$e t$yin/ to ac#ie&e0

• -#o a$e t#e .$i!a$y% seconda$y sta"e#olde$s t#ose ,#o #a&e&ested inte$est in t#e issue% decision o$ ob4ecti&e0 -#at is t#e

•. -#at a$e t#ei$ needs% issues% !oti&ations ando$ in3uences0 -t#e $is"s0 6e5/5 )ESTEL analysis 8

•. Is t#e$e an et#ical .$inci.le at sta"e0 A$e ,e .otentially &iolatio$ a *unda!ental #u!an $i/#t o* t#is sta"e#olde$ /$ou.0

•. -#at !i/#t be unintended conseuences% e7te$nalities o* ou$ a-#at a$e t#e t$adeo?s i5e5 ,#at !i/#t ,e #a&e to /i&e u. in o/et so!et#in/0

•. -#at a$e t#e *eedbac" loo.s0 Ho, can ,e !onito$ eac# $elationes.ecially t#e inte$$elations#i.s to enable us to balance

needsbene9ts o&e$ ti!e0

Syste!s T#in"in/ and Sta"e#olde$s

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St " # ld


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Sta"e#olde$Mana/e!entEn/a/e!ent : )$ocessModel

Ste.

Ste.

Ste.

Ste. D'ete$!ine

Ga.s

Ste. 2

Ste. @

Sta"e#olde$

Identi9cation

Gene$al Natu$e o*Sta"e#olde$ clai!s% !oti&ations% and

t#ei$ i!.lications

)$io$itiseSta"e#olde$ 'e!

'e&elo.O$/anisational Res.onses

Monito$in/And Cont$olResta$t

)$ocess

Sou$ce: )$e

2!


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•T#ose ,#o 1can a?ect% o$ be a?ectedF by t#e outco!e i5e5% t#ey #a&e a &ested i

,#at is doneoccu$s

•T#ose ,#o #a&e s.ecial e7.e$tise% o$ "no,led/e t#at can in*o$!

•T#ose ,#o !i/#t .$o&ide di?e$ent &ie,s% .e$s.ecti&es 6e5/5% NGOs8

•T#ose ,#o bea$ t#e $es.onsibility *o$ o&e$seein/ o$ i!.le!entin/ t#e .$o.osal% 6e!ana/e$s% e!.loyees8

•T#ose ,#o can in3uence% .e$suade ot#e$s5 6e5/5% !edia% o.inion leade$8• •T#ose ,#ose a..$o&al o$ buyin is needed to i!.le!ent 6e5/5 $e/ulato$s% local /o&

•T#ose ,#ose on/oin/ su..o$t is needed *o$ continued success 6e5/5% co!!unity% eNGOs8

%o are t%e Sta:e%oldersI&Some Criteria


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• Social

• Tec#nolo/ical

• Econo!ic

• En&i$on!ental

• )olitical

• Le/al Q Et#ical

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4dentify& e(g( S-..P0. Analysis


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Sta"e#olde$ Analysis Tool

2"


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Sta"e#olde$s a$e classi9ed byatt$ibutes:

• Power to in3uence: ability toi!.ose its ,ill and b$in/ aboutdesi$ed outco!e5

•

egitimacy o* $elations#i.: ,it#inacce.ted social syste! o* no$!s%&alues% belie*s desi$able social/ood5

• !rgency o* clai!: ti!esensiti&e%c$itical t#e de/$ee to ,#ic#

delay is unacce.table and clai! is

Mate$iality% Rele&ance:)$io$itisin/

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•

Latent& 1 attri)$te

'o$!ant /ave poHer )$t $n$sed'isc$etiona$y /ave legitimacy )$t cannot press$re Je!andin/$rgency& ir:some not dangero$s

E7.ectant& 2 attri)$tes

'o!inant poHerf$l and legitimate 3most familiar to corporations

'e.endent legitimate and $rgent

'an/e$ous $rgency and poHer

'e9niti&e: Possessing all " attri)$tes

*From ?-oHard a -%eory o f Sta:e%older 4denti+cation and Salience Mitc%ell 8 Agle 1557

Att$ibutes: )$io$itisin/ Sta"e#olde$s

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Mapping Sta"e#olde$ Inte$ests &5 In3ue

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2

Materiality Matri@& Most relevanI!.o$tant to t#e

co!.anybut notto t#e

sta"e#olde$s

I!.o$tant to

co!.anyand

sta"e#olde$s

Noti!.o$tant

to t#eco!.anyo$ to t#esta"e#old

e$s

I!.o$tant to

sta"e#olde$s butnot t#e

co!.any

-im Mo%in, Changing the Business fromInside Out, p(


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)lannin/ I!.le!entin/ A*te$!at

Relati&e I!.o$tance: Ti!eline

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? Sta"e#olde$ en/a/e!ent is t#e .$ocess used bo$/anisation to en/a/e sta"e#olde$s to ac#ie&eacce.ted outco!es5

At t#is le&el% sta"e#olde$s d$i&e st$ate/ic di$e,ell as o.e$ational e7cellence55

6it8 !ust $esult in outco!es &alued by t#ose iand !ust be co!!unicated in a c$edible ,ay5FAcco$nA)ility 3AA7 Standard 1!!!

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Sta:e%older .ngagement Proce

9 stakeholder addedum

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