1. Organizational and Manageial Communication Stakeholder Management Chapter 6

2. Peggy Simcic Brønn2 Stakeholder zAny group or individual who can affect or is affected by the achievement of an organization’s purpose. zThey have a ‘stake’ in the organization. zEncompasses a broad range of groups and individuals, some with little impact, some with great impact. Edward R. Freeman, 1984, Strategic Management: A Stakeholder Approach, Marshfield, MA:Pitman.

3. Identifying Organization’s Linkages to Stakeholders zWho are organization’s stakeholders? yNo general group, but identified by common problem yVary from case to case yDependent on what organization does and how other individuals and organizations react to organization’s behavior zKey: What consequences of organization’s activities will have on its stakeholders and how do these consequences affect each other?

4. A Stakeholder Map

5. Peggy Simcic Brønn5 OwnersFinancial CommunityActivist Groups ShareownersAnalystsSafety and Health Groups BondholdersInvestment BanksEnvironmental Groups EmployeesCommercial Banks’Big Business’ Groups National BanksSingle Issue Groups SuppliersGovernmentPolitical Groups Firm #1 Congress/ParliamentPolitical Party #1 Firm #2 CourtsPolitical Party #2 Firm #3 Cabinet/DepartmentsNational League of Cities Etc.Agency #1National Council of Mayors Agency #2Etc. CustomersCustomer Advocate GroupsUnions Segment #1Consumers’ UnionUnion of Workers #1 Segment #2Council of ConsumersUnion of Workers #2 Etc.AttacPolitical Action Committees of Unions EmployeesTrade AssociationsCompetitors Segment #1Business RoundtableDomestic Competitor #1 Segment #2Customer Trade Org. #1Domestic Competitor #2 Etc.Etc.Foreign Competitor #1 Specific Stakeholders of a Large Organization

6. Peggy Simcic Brønn6 Customer Segment #1Political Parties #1 and #2High Users of Product Improvement of ProductAble to Influence Regulatory Process Able to Get Media Attention on a National Scale Customer Segment #2Consumer Advocate #1 Low Users of ProductEffects of XYZ on the Elderly No Available Substitute EmployeesConsumer Advocate #2 Jobs and Job SecuritySafety of XYZ’s Products Pension Benefits Owners Growth and Income Stability of Stock Price and Dividends Stakes of Selected Stakeholders

7. Examples of Indirect or Coalition Strategies

8. Peggy Simcic Brønn8 Classical Stakeholder Grid

9. Peggy Simcic Brønn9 ’Real World’ Stakeholder Grid

10. Peggy Simcic Brønn10 Strategic planning including stakeholders

11. Peggy Simcic Brønn11 The ’Stakeholder Dilemma’ Game

12. Organization Stockholders Government Regulators Boards of Director Community Leaders Associations Political Groups Professional Societies Employees Unions Suppliers Consumers Industrial Purchasers Users of Service Environmentalists Community Residents Voters Media Minorities Women Other Publics NORMATIVE LINKAGES FUNCTIONAL LINKAGES INPUT OUTPUT DIFFUSED ENABLING Method for Mapping Linkages of an Organization (Grunig and Hunt, 1984)

13. Peggy Simcic Brønn13 Four Key Linkages zEnabling Linkages zFunctional Linkages yInput linkages yOutput linkages zNormative Linkages zDiffused Linkages

14. Peggy Simcic Brønn14 Functional Linkage zLinkage that give input and take output zInput Linkage yEmployees yUnions ySuppliers zOutput Linkages yCustomers yOther organizations yIndividual consumers

15. Peggy Simcic Brønn15 Enabling Linkage zOrganization could not exist without this linkage yAuthorities yShareholders yLegal System

16. Peggy Simcic Brønn16 Diffused Linkage zElements in society that are not clearly identified as a formal member of organization yEnvironmentalists yCommunity Residents yMedia yOther Publics

17. Peggy Simcic Brønn17 Normative Linkage zOrganizations that have common problems or similar values yMembership organizations yProfessional groups yAssociations