1. macroenvironment

2. 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

3. 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

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

5. STAKE
Interest
Right  legal and moral
Ownership

6. 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

7. Stakeholder Mapping

8. Community
Government
Owner
Employee
Consumer

9. Government
Local
National

10. Community
General Public
Environmental Groups

11. Institutional Investors
Corporate Raiders
Owner
Private Citizens
Institutional Investors

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

13. Product Liability Threats
Consumer Activists
Consumer

15. 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

16. 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

18. Effective Stakeholder Management
Awareness
Understanding
Relationship-building
symbiosis.