Name: Cedrick Jericho M.

Poserio
Year & Section: II-BPA-A
Subject: Good Governance and Social Responsibility

LEARNING ACTIVITY

1. Define stakeholder in your own terms. Compare your definition with the definition used
in this lecture.
→ In the lecture, stakeholders are those people and groups to whom an organization is
responsible—including customers, shareholders, employees, suppliers, governments,
communities, and many others— because they have a “stake” or claim in some aspect of a
company’s products, operations, markets, industry, or outcomes, in my own terms, a
stakeholder is a person, group or institution affected by a project outcome. You are interested
in the success of the initiative and can fund the project within or outside the organisation.
Stakeholders might influence the project positively or negatively.

2. What is reputation management? Explain why companies are concerned about their
reputation and its effects on stakeholders. What are the four elements of reputation
management? Why is it important to manage these elements?
→ Reputation management is the control and improvement procedure for how other people
regard your brand. It takes a long time to develop or modify reputations, and it is much more
essential than many businesses realize. Because a reputation of a company has the authority,
either an asset or a responsibility for the development and implementation of strategic goals
and social responsibility initiatives, to attract or reject stakeholders. The process of reputation
management involves four components that work together: organizational identity, image,
performance, and ultimately, reputation. To build and manage a good reputation, these four
areas must be aligned.

3. Define crisis management. What should a company facing a crisis do to satisfy its
stakeholders and protect its reputation?
→ Crisis management as a method for preventing, preparing and responding to events
threatened by harm to persons or property, seriously suspending activities, damaging
reputation or resulting in damages. After a crisis arises, the stakeholders of the company need a
rapid response amid the coercion and uncertainty. They need information on how the
organization is planning to resolve the problem and what each member may do to limit their
individual negative impacts. When a corporation reacts slowly, stakeholders may perceive that
it is not concerned with their demands, or that, if it fails, it is not concerned with the crisis.

4. What are the differences between the reactive, defensive, accommodative, and
proactive approaches to stakeholder relationships? Give an example.
→ Being reactive means responding after the event, such as taking steps to improve
productivity in the business after it has dropped dangerously low, not before, may mean you
are suddenly confronted by customer demand for same day shipping or AI customer service but
you don’t have the resources or infrastructure to put these in place fast enough to prevent
customer attrition. Taking a defensive approach could certainly do better at meeting its social
responsibility. A company that uses a defensive approach is sure to follow the law so that legal
action can’t be taken against it, but the main focus is on profits, for example, if Hope’s company
threw away an abundance of fabric that could be used for other products, but made sure to
dump it legally at the landfill instead of dumping it on the side of the road. Accommodative
approach is the approach to social responsibility such as a company or cooperation that
exceeds legal minimums in its commitments to groups and individuals in its social environment,
the example of accommodative stance is it may decrease its creation of waste, source products
that are not tested on animals and pay its employees a fair wage. The company would keep its
records open to the public. A proactive company makes social responsibility a priority, a
proactive company attempts to remain ahead of the curve when it comes to social
responsibility, for example, managers go out of their way to actively promote the interests of
stockholders and stakeholders, using organizational resources to do so.

5. Choose two companies in different industries and visit their respective websites. Peruse
these sites for information that is directed at three company stakeholders: employees,
customers, and the media. For example, a company that places its annual reports online
may be appealing primarily to the interests of investors. Make a list of the types of
information that are on the site and indicate how the information might be used and
perceived by these three stakeholder groups. What differences and similarities did you
find between the two companies?
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