macroenvironment http://www.docstoc.com/docs/303839/Society-Relationship-PPT http://www.swlearning.com/management/carroll/bas5e/isc/powerpoint.html

Environmental Scanning TECHNOLOGICAL POLITICAL Social environment focuses on demographics, lifestyles and social values Economic environment focuses on the economy (unemployment, competition) Political environment focuses on the legislative process, election process and the interaction between firms, politics and government (relationships, processes, and political change) Technological environment focuses on the changes in technological advancement (new products and processes, innovation, scientific discovery) ECONOMIC SOCIAL

PLURALISTIC Weaknesses Strengths Prevents concentration of power Maximizes freedom of expression Disperses individual allegiances Creates diversified set of loyalties Provides checks and balances Weaknesses Pursuit of self-interest Proliferates organizations and groups with overlapping goals Forces conflicts to center stage Promotes inefficiency Pluralistic – diffusion of power

STAKEHOLDERS are those groups or individuals with whom an organization interacts or has interdependencies.

STAKE Interest Right  legal and moral Ownership

Constituents Stakeholders With an indirect relationship with the corporation E.g. Competitors With a direct interest in the corporation Stockholder Board of Directors Owns the corporation Manages the corporation

Stakeholder Mapping

Community Government Owner Employee Consumer

Government Local National

Community General Public Environmental Groups

Institutional Investors Corporate Raiders Owner Private Citizens Institutional Investors

Civil Liberties Activists Unions Older Employees Women Employee Minorities Civil Liberties Activists

Product Liability Threats Consumer Activists Consumer

Stakeholder Approaches Strategic approach considers stakeholders primarily as factors managers should manage in pursuit of shareholder profits Multi-fiduciary approach considers stakeholders as a group to which management has a fiduciary responsibility Synthesis approach considers stakeholders as a group to whom management owes an ethical, but not a fiduciary responsibility

Stakeholder Attributes Legitimacy refers to the perceived validity of the stakeholder’s claim to a stake Power refers to the ability or capacity of a stakeholder to produce an effect Urgency refers to the degree to which the stakeholder’s claim demands immediate attention

Effective Stakeholder Management Awareness Understanding Relationship-building symbiosis.