The concept of stakeholder’s management: the essence and its role for CSR Лекция 2 The concept of stakeholder’s management: the essence and its role for CSR

Plan 1. External and internal CSR environment 2. The concept of stakeholder’s management 3. The model of stakeholder’s analysis

Internal and external CSR environment.

CSR cannot be considered in terms of the society as a whole. For any business organization the society is a system of entities including individuals, groups and organizations effecting or being effected by the decisions taken

The top management is to solve the system of issues:   Ranging of involved players   Balancing of expectations of every involved parties   Balancing of controversial expectations of every involved parties   Synergy.

As a results CSR can be referred to as The concept of the stable development of the company, this notion having a strategic character

The concept of stakeholder’s management

The idea of stakeholder’s theory Every organization, commercial enterprise, state bodies, public organizations have counterparts effecting or being effected by their activity at the present moment and in the future

The aim of cooperating with the involved parties (stakeholders) is the correct decision about the direction of the strategic development of an organization and the ways of its performance improvement with the purpose of achieving the certain stable level, that cab be beneficial to every party:   an organization,   its partners,   the society

1984 “Strategic management: the role of stakeholders” E. Freeman «Strategic management: the role of stakeholders» defines the stakeholders the following way: “any individual, group or organization that has a significant influence on the decisions made by the organization or which is influenced by those decisions”

The classical list of stakeholders is the following   owners,   consumers,   competitors,   mass media,   employees,   environmental protection organizations,   suppliers,   state bodies,   local public organizations.

2002 D. Post, L. Preston S. Sachs “Redefining the Corporation: Stakeholder Management and Organizational Wealth” The relations between the corporation and its stakeholders are the source of “relationship assets” the source of the development of which is the balanced response of the company to controversial expectations of the involved parties

Recommendations according to the sustainability report GRI (Global Reporting Initiative): Stakeholders are organizations or individuals that according to the reasonable expectations are significantly influenced by the activity, products and/or services of the enterprise, and those that can effect the ability of the enterprise to successfully carry out its strategy and to achieve the put forward goals.

2005 Standard АА 1000 SES (Stakeholder Engagement Standard) – is recommended to be applied when   planning,   carrying out,   evaluating,   informing   non-financial quality auditing of the relations with the involved parties It assists in managing the process of negotiating and cooperating with the involved parties

Stakeholder management is emphasized in the project Standard ISO «Management of social responsibility».

Stakeholder management includes  Balanced and responsible considering all thoughts and expectations of the involved parties  Transforming expectations of the involved parties, effecting their approaches through effective communication  Mutually profitable cooperation;  Following changes in the stakeholder’s approach.

stakeholder analysis  Organize group brainstorming. Identify all the people, groups, and institutions that will affect or be affected by your initiative and list them in the column under "Stakeholder."  Once you have a list of all potential stakeholders, review the list and identify the specific interests these stakeholders have in your project. Consider issues like: the project's benefit(s) to the stakeholder; the changes that the project might require the stakeholder to make; and the project activities that might cause damage or conflict for the stakeholder. Record these under the column "Stakeholder Interest(s) in the Project."  Now review each stakeholder listed in column one. Ask the question: how important are the stakeholder's interests to the success of the proposed project? Consider:  The role the key stakeholder must play for the project to be successful, and the likelihood that the stakeholder will play this role  The likelihood and impact of a stakeholder's negative response to the project  Assign A for extremely important, B for fairly important, and C for not very important. Record these letters in the column entitled "Assessment of Impact."  The final step is to consider the kinds of things that you could do to get stakeholder support and reduce opposition. Consider how you might approach each of the stakeholders. What kind of information will they need? How important is it to involve the stakeholder in the planning process? Are there other groups or individuals that might influence the stakeholder to support your initiative? Record your strategies for obtaining support or reducing obstacles to your project in the last column in the matrix.