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STAKEHOLDERS MAP OF
ITS IMPORTANCE IN BUSINESS AND SOCIETY
IN LARGE
DEFINITION OF STAKEHOLDER
A Person, Group or Organization that has interest or concern in an
Organization.
Stakeholders can affect or be affected by
the Organization's Actions, Objectives and Policies. Some examples
of Key Stakeholders
are Creditors, Directors, Employees, Government (and
its agencies), Owners (Shareholders), Suppliers, Unions and
the community from which the business draws its resources.
Not all Stakeholders are equal.
A company's Customers are entitled to fair Trading Practices
but they are not entitled to the same consideration as the
Company's Employees. An example of a negative impact on
Stakeholders is when a company needs to cut costs and plans
a round of layoffs. This negatively affects the community
of workers in the area and, therefore, the local economy. Someone
owning shares in a business such as Microsoft is positively affected.
For example, when the company releases a new device and sees
their profit and therefore stock prices rise.
PURPOSE
Stakeholders have power over a Company. Some of those are people
who own shares in the Company. Other Stakeholders are the
Customers who buy the products or services the Company offers.
CREATING A MAP
While the more Stakeholders or Stakeholder Groups a Company has,
the more complicated a Stakeholder map will be. A simple one can
help give you a general idea of how to create maps, as well as of
those stakeholders you need to be aware of. Make a chart with four
cells, two on the top row and two on the bottom row. The horizontal
line going through it represents and should be labeled "POWER"
Those below the line hold power over the company, whereas those
above do not. Above the chart, write "LEVEL OF INTEREST" and just
below that, above each of the two Rows, write "LOW" and "HIGH" To
the left of the chart, above "POWER" write "LOW" and then "HIGH"
below it. That still leaves you with four empty Cells. In row 1 cell 1,
write "MINIMAL EFFORT" In row 1 cell 2, write "KEEP INFORMED" In
Row 2 Cell 1, write "KEEP SATISFIED" and in Row 2 Cell 2, write "KEY
PLAYERS".
INSTRUCTIONS
1) Divide your main stakeholders into the basic categories of
INFLUENTIAL or not and
degree;
but could help you if they saw it was worthwhile. Both can be
useful if handled right.
Stakehol
ders
Governm
ent
Employe
es
Customer
s
Suppliers
Creditors
Communi
ty
Trade
Unions
Owner(s)
Investors
TYPES OF STAKEHOLDERS
1) People who will be affected by an endeavor and can influence
it but who are not directly involved with doing the work.
2) In the private sector, people who are (or might be) affected by
any action taken by an organization or group. Examples are
parents, children, customers, owners, employees, associates,
partners, contractors, and suppliers, people that are related or
located nearby. Any group or individual who can affect or who
is affected by achievement of a group's objectives.
3) An individual or group with an interest in a group's or an
organization's success in delivering intended results and in
maintaining the viability of the group or the organization's
product and/or service. Stakeholders influence programs,
products, and services.
4) Any organization, governmental entity, or individual that has a
stake in or may be impacted by a given approach to
Employees
Communities
Shareholders
Creditors
Investors
Government
Customers
Suppliers
Labor Unions
Professional Associations
Prospective Employees
Prospective Customers
Local communities
National Communities
Competitors
Schools
Future Generations
Alumni (Ex-employees)
Research Centers
Each Person
MANAGEMENT
Stakeholders can hold significant management positions where they
may report directly to the president, CEO or chief financial officer.
Within certain departments, the manager may be a stakeholder
because his decisions may cause the success or failure of that
department's performance, Management may be responsible for
hiring personnel within that department, providing training and
informing the department of any updates or changes in the
business's policies and procedures.
INVESTING
Stakeholders are commonly responsible for maintaining or achieving
a return on investment. Sometimes, the investment can be made on
a consistent basis over time. For example, consistently investing in
stocks through one company is an example of a stakeholder that is
continuously increasing her stake in the company. Stakeholders are
responsible for reviewing the financial data of the company to
ensure that the business is performing well and that they are not
losing their investment. They may also be responsible for voting on
allocation of certain funds.
CORPORATE CONSCIENCE
Large stakeholders are generally high profile investors, and would
like to steer clear of companies that trample human rights and
environmental laws. They monitor your companys outsourcing
activities and globalization initiatives, and may vote against your
business decisions if they are deemed harmful to the companys
long-term goals.
OTHER RESPONSIBILITIES
Of course, this is only a broad description of stakeholder
responsibilities. Ideally, youll have stakeholders who care about
these four issues, but more often than not, short-term profits take
precedence over long-term sustainability. While stakeholders may
own your company, its easier to control your investors when your
company is privately held than publicly traded. Often times, the
large influx of cash from a successful IPO turns out to be a deal with
the devil when your company is suddenly taken over by a board of
directors that ousts you. On the flip side, however, stakeholders can
keep your company grounded and focused on its most profitable
products and sustain your companys earnings growth.
2) EMPLOYEES
As stakeholders move toward Stage 2 and involve employees in
social responsibility, employees begin to buy into the bigger picture.
The organization involves them in decision making. Management
considers team spirit and overall company morale. The company
focuses on employee ethics but recognizes that ethical issues may
not be hard and fast. For this reason, most companies operate
according to specific ethical standards. When management abides
by the same standards, communicates expectations clearly and
offers training, the company can present a united front in the area
of ethics.
4)
SOCIETY