Corporate Impact Management

Stakeholder Indentification

 

Most businesses are familiar with the concept of shareholders – those who have bought shares in a company. Their investment makes them important to the company and the performance of the company is important to them. As a result they will have something of a say in how the company operates. This influence will typically be proportional to the financial stake that they have in the company and be regulated by law.

There will be also be others, apart from investors, who are important to the company’s success and who depend on the success of the company e.g. employees.  While they will have some rights in law they are unlikely to have a right to direct the company. However, when the interests of employees and the company diverge too greatly views will be expressed and often there will be conflict e.g. strikes and other industrial action over issues such as changes in terms or redundancies.

There will also be other groups with a less clear part in the success of an organisation – such as the local community. However, public support is often necessary to enable organisations to make significant changes such as build new premises.  Communities may also be impacted by buying decisions and employment opportunities generated in the day-to-day operation of a business.Each of the different groups people above can be thought of as ‘stakeholders’ in the business.

In these instances, there is an interdependent relationship between the company and its stakeholders. But as we have seen the balance of power in that relationship can vary. In some instances there will be a number of stakeholders that have a very small impact on a business but on who the business can affect dramatically. It is important not to overlook moral and reputational issues associated with how a company treats such stakeholders.

As has been mentioned elsewhere in this resource, businesses can have an impact on communities and the environment through a wide range of their activities. Thinking about groups of stakeholders (stakeholder-groups) within these environments and communities is a way of building up a more detailed picture of your impact.

Stakeholder-groups can include:

  • Investors
  • Customers
  • Suppliers
  • Employees
  • Communities
  • Governments
  • Non-Governments Organisations (NGOs)

It is also possible to consider the environment in this framework by considering the immediate needs of ‘non-human species’ as a stakeholder. However, you could also use a purely social model by considering environmental damage as an impact on ‘future generations’ as this relates well to the need for Sustainable Development.

 

 

IN THIS TOPIC:

Overview

>Stakeholder Identification<

Stakeholder Analysis

Stakeholder Engagement

Stakeholder Relationship Management


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