Stakeholders Management

Sudhir K Sinha
 Training Objectives

At the end of the session, you should be able to:

 Use different methods to identify stakeholders

 Determine the best approaches to engage stakeholders in your
work and to build trust
 Recognize how to work with your stakeholders to proactively
accept changes in your work
 Focus on active listening when stakeholders have concerns,
issues, or suggestions
 Work with stakeholders to promote organizational value

2
 What is a Stakeholder? (1 of 3)

“A stakeholder in an organization is any group or

individual who can affect or is affected by the
achievement of the organization’s objectives.
(Freedman, 1984, p. 4)

Source: R.E. Freedman, Strategic Management: A Stak eholder Approach”, 1984

3
What is a Stakeholder? (2 of 3)

“An individual, group, or organization who may

affect, be affected by, or perceive itself to be
affected by a decision, activity, or outcome of a
project.”

Source: PMI, PMBOK® Guide - Fifth Edition, 2013

4
 Stakeholders Analysis
 Stakeholder analysis:
 A tool and technique for Organizational Planning – to ensure
stakeholder needs are analyzed and can be met (Source: PMI)
 Also in Communications Planning – analyze to determine
information needs and how to meet them –”avoid wasting
resources on unnecessary information or inappropriate
technology” (Source: PMI)

 Risk quantification – “an opportunity for one stakeholder

may be threats to another” (Source: PMI)

5
 Stakeholders – Key Attributes

 Legitimacy refers to the perceived validity of the

stakeholder’s claim to a stake
 Power (to influence) 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

6
 Salience Model

3 6
1

4
5

Interest

5,6,7- Latent stakeholders: one attribute, low salience. Managers may do nothing about these stakeholders and
may not even recognise them as stakeholders.
2,3,4- Expectant stakeholders: two attributes, moderate salience. Active rather passive. Seen by managers as
'expecting something'. Likely higher level engagement with these stakeholders. 7
1- Definitive stakeholders: all three attributes, high salience. Managers give immediate priority to these
stakeholders.
Salience Model - Analysis

8
Key Classification Models –
Power/Interest Grid

9
 Stakeholder Engagement Plan

A detailed strategy for effective stakeholder

engagement on the program:

 Includes stakeholder engagement guidelines

 Provides insight as to how stakeholders are engaged

 Defines metrics to measure performance of

stakeholder engagement activities

10
Principles of Stakeholder Management

11
 Principles of Engagement
1. Engage on issues that matter
2. Engage the right stakeholders
3. Determine shared value
4. Agree on rules of engagement
5. Manage expectations
6. Provide adequate resources
7. Choose the right format
8. Listen to (critical)stakeholder views
9. Build trust
10. Be open
11. Be accountable
12. Look beyond the engagement

12
 Remember
 Continually engage with stakeholders
 Communication requirements may change
 Ensure communications needs are met
 Ensure needs align with the stakeholder engagement
plan
 Obtain feedback on the plan
 Use interviews, questionnaires/surveys,
meetings, lesson learned sessions,
brainstorming

13
Let’s invest our time and energy in knowing
our stakeholders first before we begin any
activity as it is key to the success of our
decisions for initiating any activity, project
or program. If we cannot devote quality
time to working with our stakeholders using
well-conceived strategies, we will probably
be placing our program or project at risk in
some way or another.

14
Thank You!

15
ECONOMIC DEVELOPMENT
VERSUS
SUSTAINABLE DEVELOPMENT
PROF SUDHIR K SINHA
ECONOMIC GROWTH & ECONOMIC DEVELOPMENT ???

 Achieving high rates of economic growth is the major economic policy

 The economic growth is quantitatively measured by GDP

 Ideally the economic growth must target to fulfilling humans’ basic as well as aspirational needs (elimination of
poverty, hunger, homelessness, disease, and unemployment, etc.) and society’s desirable expectations such as
reduction in inequality and injustice, etc.
 GDP model of growth is focussing more on production, productivity and consumption of goods & services

 GDP model of growth is promoting consumerism

 GDP model of growth is causing rise in inequality

Question:
Isn’t the present model of economic development flawed?
Isn’t it harsh and insensitive to underlying needs & expectations of society?
 From a socio-human perspective, development is a category designating a
complex motion oriented, irreversible, developed in general and ultimately
on an ascending line from the lower to higher, from old to new. It is made
with endless succession of changes, quantitative accumulation, evolution and
revolution, progress and regress, forming sides, inseparable aspects of
development, being an indissoluble unity.” (small encyclopaedic dictionary, 1978)

ECONOMIC/
DEVELOPMENT Economic development has a much broader framework than
growth and it involves “a set of transformations that alter
behaviour, integrates knowledge advances, improvements to
labour skills, industry knowledge, influencing expectations
and stimulating accumulation. It is a complex process that
combines economic issues with the sociological,
psychological, and political aspects of human life and society.
Development goes far beyond simple economic
performance.” (Ignat et al, 2002)
RELATIONSHIP

01 02 03
Economic growth is Economic There may be
is not all economic development economic growth
development includes economic without
growth development
CONSEQUENCES OF ECONOMIC DEVELOPMENT

 Depletion of natural resources

 Worsening of environmental problems (toxic waste generation, biodiversity & forests,

endangered species)
 Global warming; Climate change

 Inequality – Rich becoming Richer; Poor becoming Poorer

 Uncontrolled urbanization

 Non-Resilient society
 ‘The Limits of Growth’ by Meadows & Meadows in 1972 raised the concerns
on the future of:
 Mankind (population),
ZERO ECONOMIC
 Resources,
GROWTH OR
 agriculture production
GROWTH
LIMITATION:  Environmental pollution

 Industrial production

ARGUMENTS
They argued and concluded that in about 40 years there will be major aggravation
of the pollution problems, the continuous increase of supply will feed continuously
the inflation, the diminishing of resources, all these leading to a decline in
economic growth.
THE MINIMAL BIO-ECONOMIC PROGRAM
Nicholas Georgescu-Roegen’ Action Plan

 the necessity of wars cessation, which would allow the release of tremendous productive forces to help
poor countries;
 the use of resources current non-renewable with great responsibility and avoiding unnecessary energy
losses until the use of solar energy or any other alternative energy sources becomes a generalized
process;
 the necessity for mankind to gradually reduce the population to the point where it will be fed only
through the organic agriculture;
 the renunciation to change the car each year or to throw things that still can provide their services. This
is a bio-economic murder. Goods must be manufactured with a high durability and must be easy to
repair.
SOLUTIONS

 Sustainable Decrease: Sustained decrease represents a new vision of the

development that consists of a series of objectives as solutions to the
current growth exhausting resources.

 These are contained in the so called Program of 6 R: review,

restructuring, redeployment, reduction, reuse, recycling, issues
that comprehensively define the concept of sustainable development.
SUSTAINABLE DEVELOPMENT – IMPORTANT YEARS

 1972 - the Stockholm Conference on the Environment initiated by the U.S. and Scandinavia for the first time is presented the
deterioration of the environment due to human activities
 1983 - the World Commission on Environment and Development begins its work, chaired by Norwegian Prime Minister Gro.
H. Brundtland
 1985 – The Vienna convention was signed to reduce production and consumption of harmful substances for protective ozone
layer that surrounds the planet.
 1987 – Brundtland Report was submitted; presented six definitions, one was accepted.
“Sustainable development is development that meets the needs of the present without compromising the
ability of future generations to meet their own needs.”
 1992 – The Earth Summit was held in Rio de Janerio which brought together more than 100 heads of state; to achieve a
consistent program of sustainable development in view of reconciliation between economy and environment.
 1997 - Kyoto Protocol which made industrialized countries promise to cut emissions of greenhouse gases by 2012
 2002 - World Summit on Sustainable Development in Johannesburg; it ratified a treaty on conserving natural resources and
biodiversity,
 2012 – Earth Summit, reconciling the economic and environmental goals of the global community; made the draft of SDGs.
SDGs
SDGs
SDGs
THE SDGS ARE …

 A set of 17 goals for the world’s future, through 2030

 Backed up by a set of 169 detailed Targets
 Negotiated over a two-year period at the United Nations
 Agreed to by nearly all the world’s nations, on 25 Sept 2015
 The 2030 Agenda is the outcome of the post-2015
intergovernmental negotiations. The 2030 Agenda is a
substantive 35-page document containing five sections:

THE AGENDA  Preamble

2030  Declaration
 Sustainable Development Goals and targets
 Means of implementation and the Global Partnership
 Follow-up and Review
OVERVIEW

The implementation of the

To ensure its success, the
Agenda is a roadmap to a
Agenda must remain of the
better future for humanity and
people, by the people and for
and our planet, all of us are
the people, committing the
responsible for ensuring that
world to global action for the
the journey is successful and
next 15 years.
its gains sustainable.
POLITICAL BALANCE OF THE 2030 AGENDA

The political balance of the Agenda can be summarized as: Universal Ambition with
with National Ownership

The Declaration defines the concept of national ownership as a counterweight

counterweight to its universality, which is reflected and reinforced throughout
throughout the entire Agenda

“ This is an Agenda of unprecedented scope and significance. It is accepted by

by all countries and is applicable to all, taking into account different national
national realities, capacities and levels of development and respecting national
national policies and priorities” (para 5)
WHAT IS NEW AND DIFFERENT ABOUT THE 17 SDGS?

First, and most important, these Goals apply to every nation … and every
sector. Cities, businesses, schools, organizations, all are challenged to act.
This is called

Universality
Second, it is recognized that the Goals are all inter-connected, in a system. We
cannot aim to achieve just one Goal. We must achieve them all. This is called

Integrity
And finally, it is widely recognized that achieving these Goals involves making
very big, fundamental changes in how we live on Earth. This is called

Transformation
 Comparing the MDGs and the 2030
Agenda

(MDGs)
SDGs
Millennium Development Goals

Adopted in 2000 and ended in

2015
Focus on developing countries
SDGs-2030 Agenda

Adopted in 2015 and ends in 2030

Universal, applies to all countries

To reduce extreme poverty To eradicate poverty in all its forms and and to realize
economic empowerment through sustainable development

8 goals and 18 targets with 48 17 goals and 169 targets with 230 global indicators
indicators
 SDGs
LET’S TAKE A TOUR …
#1: End
poverty in all
its forms
everywhere
#2: END HUNGER, ACHIEVE FOOD SECURITY AND
IMPROVED NUTRITION
AND PROMOTE SUSTAINABLE AGRICULTURE
#2: End hunger, achieve food security and improved
nutrition and promote sustainable agriculture

#3: Ensure
healthy lives
and promote
well-being for
all at all ages
 #4: Ensure
inclusive and
quality education
for all and promote
lifelong learning
#5: Achieve
gender
equality and
empower
women and
girls
#6: Ensure access to
water and sanitation
for all
#7: Ensure access
to affordable,
reliable,
sustainable and
modern energy for
all
#8: Promote inclusive
and sustainable
economic growth,
employment and
decent work for all
#9: Build resilient
infrastructure,
promote
sustainable
industrialization
and foster
#10: Reduce
inequality within
and among
countries
#11: Make cities
inclusive, safe,
resilient and
#12: ENSURE SUSTAINABLE CONSUMPTION
AND PRODUCTION PATTERNS
#13: Take urgent
action to combat
climate change and
its impacts*
#14: Conserve
and sustainably
use the oceans,
seas and
marine
 #15: Sustainably manage
orests, combat desertification,
halt and reverse land
degradation,
#16: Promote just, peaceful
and inclusive
societies
#17: Revitalize
the global
partnership for
sustainable
development
Each goal
is
important
in itself …

SDGs
Each goal And they
is are all
important connected
in itself …

SDGs
UNFINISHED BUSINESS
OF THE MDGS (SDGS 1-5)

SDGs
SDGs
NEW AREAS - (SDGs 6-11) CONT’

SDGs
GREEN AGENDA - (SDGS 12-15)

SDGs
GOVERNANCE/PEACE -
(SDGS 16)

SDGs
MEANS OF IMPLEMENTATION -
(SDG 17)

SDGs
THE WORLD BY 2030

1 2 3 4 5 6

The world will need India will According to A study estimated It is estimated that Of the world's
at least 50 percent surpass China as the projections by that due to the global middle population, 60% will
more food, 45 most populous the United Nations, continued economic class will number live in urban areas
percent more energy country this year or the world growth in Africa, about 4.9 billion due to
and 30 percent more earlier. population of most impoverished people, about 66% of rapid urbanization.
water than it did in humans is estimated Sub-Saharan African whom will live It is also estimated
2012, according to be between countries will in Asia, and 80% that there will be
to United approximately 7.8 graduate from low to living in what in 2015 41megacities that
Nations High Level and 8.5 billion middle-income is considered the will collectively
Panel on Global people. status by 2030. developing world. contain 9% of the
Sustainability world's population.
estimates.
 EMERGING TRENDS THAT ARE LIKELY TO SHIFT THE GOALPOST OF
DEVELOPMENT STRATEGIES BY 2030 IN INDIA.

1. India is in the process of a demographic transition from high fertility, high mortality and stable population to low fertilit y, low
mortality and stable population.
2. Population, food security, education and remunerative employment opportunities are closely interconnected.
3. India will have growing demand for food, water, and energy. A growing middle class and gains in empowerment will lead the
demand for food to rise by 35%, water by 40%, and energy by 50%, government research suggested.
4. Demographic patterns: A combination of widespread aging, falling fertility, and urbanization will lead to a dramatically
different country in 2030.
5. With an expected 1.35 billion people, human civilization will be both older and much more focused on urban life. Our
infrastructure may improve, but our level of innovation and output will slow down without younger workers.
6. Individual empowerment: The new wealth will produce millions more empowered individuals that will have the impact on
widening economic disparities.
7. Climate change effects will make a large section of our population in India vulnerable.
8. India has signed up to the global commitments under the UN’s SDGs; India essentially has to achieve SDGs, else
it will fail the world to achieve the goals.
 TRENDS AND ALTERNATIVES OF DEVELOPMENT FOR A ROAD TO 2030
1. Demography of India will change significantly by 2030. India, a middle income country in 2020, could be a developed country by 2030 with
proper implementation of economic goals. According to predictions, India will be the 3rd largest economy by the year 2030. India will witness
reduced extreme poverty <70 million by 2020.
2. Food security: Both per capita food grain consumption and total calorific intake are found to have a declining trend and will remain a serious
challenge
3. Unemployment – India’s greatest challenge will be to provide employment opportunities for all job-seekers. The working age population will
expand by about 45 per cent in 2020, spurring rapid growth of the labour force and the number of job-seekers. Total employment in
agriculture may fall below 45% in 2020. However share of the employment in service sector is likely to grow. By 2030 India will remain young
and the mean age its majority population (51%) is projected to be at 31. (Base year:2000)
4. Education: India’s education system has expanded exponentially over the past seven decades, but its current achievements are grossly
inadequate for the nation to realise its potential greatness. The trends will require the country to move from literacy centred educational
development to making education functional by focusing on increasing the knowledge capital which will enable India become a Human
Resources hub of the world.
5. Vocational training: The knowledge and skill of our workforce will be a major determinant of India’s future rate of economic growth as well as
the type and number of jobs we create. Although 54 per cent of Indians are engaged in agriculture, vocational training for farmers is one of the
weakest links in the Indian educational system.
6. Health – Efforts are being made to improve the universal access to primary healthcare, which will be increased further by 2030; however, India
will face severe threats from some newer challenges such as increase in TB, diabetes, and cancer.
7. Vulnerability: the population size of old aged people will grow from 45 million in 2000 to 76 million in 2020 and will grow at an annual growth
rate of 2.6%. People living along the coastal areas, flood prone areas and dry zones will become more vulnerable due to adverse effects of
temperature rise and climate change. Farmers in particular will face the vulnerability due to erratic patterns of monsoons.
8. Urbanisation: The declining trends of growth in urban centres while the increasing growth of urban population is going to be a major
challenge. The alternative solution to stop the growth in urban population lies in PURA (provision of urban amenities in Rural Areas). Indian
cities have gone beyond its capacity to accommodate the increased population. Results: Diminishing all kinds of resources
 Dilemma
of Prof. Sudhir K Sinha

Development & Social Justice

Sanjana, Sanjay and Soumya and a flute -
Who deserves and shd be given the flute

• Sanjana is the only one of the three who knows how to play flute

• Sanjay is the only one of the three who is poor, and he has no toys of his
own

• Soumya is the only one of the three who has been working diligently for
may months to make the flute with her own labour
Different Persuasions
Utilitarians
An utilitarian will always find
it difficult to have claim over
the two; however, she is the
only one who knows how to
Action play it and the argument in
favour of utility against the
waste of resources make the
claim stronger.
Drivers Human fulfilment
Egalitarians
Sanjay will get support from
economic egalitarians who
wishes to reduce gaps in
the economic means of
people.
Removal of poverty
Libertarians
Soumya wd receive
sympathy from libertarians
who place arguments on
‘rights’
Entitlement to enjoy
products of own labours
Conscious Capitalism
“Conscious Capitalism is a philosophy about how to lead and manage a business in
the 21st Century that leads to more value creation for all of the major stakeholders –
customers, employees, suppliers, investors, society and the environment.”
 Lack of equality & opportunity

Worker exploitation

Failures of
Traditional Growing disparity of wealth and income

Capitalism
Moral & ethical irresponsibility

Ecological disasters
 Higher
Stakeholder
Purpose &
Integration
core values
Principles of
Conscious
Capitalism Conscious
Conscious
Culture &
Leadership
Management
 Trust

Accountability

Caring
Characteristics
of Sustaining Transparency
Culture
Integrity

Learning

Egalitarianism
Arguments against CSR
 “The idea that companies
have a social responsibility to
act in the public interest and
will profit from doing so is
fundamentally flawed…But it’s
an illusion, and potentially
dangerous one”
- Aneel Karnani, 2010

“The responsibility of a
business is to maximize
shareholder value…the
business of business is
Arguments against CSR business.”
- Milton Friedman, 1970
 • Restricts the classic • Creates confusions and
Arguments economic goal of profit conflicts among
Against CSR maximization managers, what they
must prioritize – social
or economic objectives.
• Business is not
equipped to handle • Increases the power of
social activities business – taking the
roles of government
• Dilutes the primary
purpose- businessmen • Limits the ability to
are not the moral compete in a global
agents marketplace
• Burden on consumers

3
Y Stakeholders Communities
A. Land Losers
Engineering B. Co habiting & Dependent
Pressure Group Firm C. Impacted by CSR project
A. Farmers’ Association D. Villagers along the pipeline
B. Environmentalists
C. NBA (type organs)
NGOs
A. Other NGOs in the area
B. Activist NGOs
Company
Media
Academicians
Political
A. Sarpanches
B. MLA(s)/MPs
C. Political Parties
Brokers (Oppositions) Govt.
A. Local Contractors A. District Admin
B. Middlemen B. Departments
C. Musclemen

X
Analysis of stakeholders and strategy for engagement…contd.

Key Stakeholders Attributes Salience Types Approach

Land losers L+U Moderate Dependent Manage them well/empathy
Co habiting/dependent communities U Moderate Demanding Manage them prudently/carefully
Communities impacted by CSR Project P Low Dormant Manage them well/empathy
Farmers’ Association P Low Dormant Communicate with them
Brokers U Low Demanding Manage them carefully
Sarpanches P+L High Dominant Engage with them
MLS & MP P+L High Dominant Manage them carefully
Government P+L High Dominant Manage them carefully
Analysis of stakeholders and strategy for engagement…contd.

Key Stakeholders Attributes Salience Types Approach/Strategy

NGOs L Low Discretionary Communicate with them
Environmentalists U Low Demanding Manage them carefully
NBA U Low Demanding Manage them carefully
Media L Low Discretionary Communicate with them
Brokers U Low Demanding Manage them carefully
 Analysis of stakeholders and strategy for engagement
Permutation –Combination changes
salience
Land Losers + Co Habiting P+L+U High Definitive Engage with them with high
priority
Land losers + Farmers’s Asscn P+L+U High Definitive
Land Losers+ Activists P+L+U High Definitive
Land Losers + Politicians (P+L) P+L+U High Definitive
Land Losers + Sarpanches (P+L) High Definitive

All of them are giving power to the Land losers They are separate groups and
their salience is low but they
have potential to make or
convert moderate salience into
Definitive.
Y
High
Stakeholders- Power & Interest grid
Communities
Keep satisfied Media
A. Land Losers
B. Co habiting & Dependent
Pressure Group
Academicians
A. Farmers’ Association C. Impacted by CSR project
B. Environmentalists NGOs
C. NBA (type organs) A. Partnering NGO Company
B. Other NGOs in the area
Power to Influence

C. Activist NGOs
Political
A. Sarpanches
Manage closely
B. MLA(s)/MPs
C. Political Parties

Monitor (Oppositions) Keep informed

Brokers Govt.
A. Local Contractors A. District Admin
B. Middlemen B. Departments
C. Musclemen

Low
High
Interest X