Stakeholder_Analysis

Stakeholder_Analysis - Stakeholder Analysis The goal of a...

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Stakeholder Analysis The goal of a stakeholder analysis is to identify the set of stakeholders for which the firm’s management must actively develop and implement strategies. Recall that the definition of a stakeholder is very broad: Any person or group that affects or is affected by an organization’s decisions, policies, or operations. Lots of people and groups qualify as stakeholders under this definition, but managers don’t need to develop and implement strategies for all of them. Thus, a stakeholder analysis is centrally concerned with identifying which stakeholders are critical ones -- which ones are so important to the firm’s work that managers perceive that dealing with these stakeholders is essential to the success of the business. Consequently, the manner and degree to which stakeholders affect the firm, or are affected by the firm, becomes a central part of the analysis. Stakeholders that have strong influence over the firm’s mission-critical activities; stakeholders that management identifies as making legitimate claims on the firm, and to whom the firm feels significant obligations; stakeholders who are demanding immediate action by the firm -- all these are cases of stakeholders that are likely to attract the attention of managers. The logical steps that managers should follow in identifying such stakeholders are as follows: 1. Based on your knowledge of the firm’s business, make a list of the stakeholders that seem to be prominent in the things the firm does. For example, if the firm markets consumer products, consumers are stakeholders -- the firm can’t make money if it doesn’t sell its product. If the firm is in a capital-intensive industry, or needs a line of revolving credit to conduct its business, it is likely that lenders -- banks, for example --
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Stakeholder_Analysis - Stakeholder Analysis The goal of a...

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