U3E3 - Stakeholders Management

denkstatt GmbH
Authors: LeadSUS Training Material Committee
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 Learning Objectives

 Objectives:
 The student understands the “stakeholder” concept
 The student understands how to identify different stakeholders groups
 The student is able to identify, map and analyze the stakeholders environment of a
company
 The student understands and is able to define the stakeholder engagement process
 The student understands the stakeholder management process

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Content

Defining the stakeholders

Stakeholder management
Stakeholder identification and mapping
Analysis of stakeholder relation
Stakeholder engagement

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 Defining the stakeholder

Any person or group of persons which influence or are influenced by an

organization or its values
R. Edward Freeman - Strategic Management: A Stakeholder Approach (1984)

ORGANIZATION

Natural environment

A person or a group which has an interest on

company’s actions and decisions (ISO26000)

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 Stakeholder management

Understanding the impact it has on society, Strategic approach

environment and stakeholders Identification of stk
Identification themes
Setting Goals
Prioritization

Analysis, action and

reporting
Future activities
Analysis of the
collaborative process
Learning and integration
experience
Secure relations
Analysis and Planning
Analysis of current
relationships
Understanding the issues
Common objectives
Stakeholder Clearly defined areas of
management action

Proving adequate Relevant aspects for the

response organization and its
stakeholders

Capacity development
Development and
commitment Ability to respond to
concerns / requirements
Identifying the best
approach Internal relationship
Management capabilities
Planning approach Mechanism of cooperation

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 Sphere of influence and sphere of power

Influence = decisions
Power = requirements

Power Influence

IMPACT IMPACT
Supplier Supplier Supplier Organization Consumer Comunity Society

EXPECTATIONS EXPECTATIONS

An organization is responsible for managing the impact of its actions and decisions
An organization is responsible for considering the society's expectations

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 Strategic approach

Strategic approach
Scope Identify the strategic priorities in the relation with
stakeholders
Principles Essential in identifying the common interests between the
organization and its stakeholders

Steps
Identification of stakeholders
Identification of risks, opportunities and objectives in the relation with stakeholders
Identification of strategic objectives in relation with stakeholders and their importance

•„Learn more about…”

• „Collaboration to address ...”
•“Improve the relation with …”
•„Finding a solution regarding ...”
•„Developing of a policy concerning ...”
•„Communicating our decision on …”

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 Identifing the priorities in the relation with stakeholders

Innovation, creating a new business model

Credibility
STRATEGIC Leadership

• Identifying and understanding the issues that influence

performance (economic, social, environmental)
• Attracting external expertise
Proactive • Reducing the effects of negative impacts on
management stakeholders

• Good relationships with the community, good

public image, reputation
• Conflict prevention
• Reducing costs
Risk management • Maintaining social license to operate
• Expansion

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 Analysis and planning

Analysis and planning

Scope Expand the knowledge about the company and its stakeholders
in order to develop an engagement plan

Principles Common interests and objectives should be used to create a

common platform for future actions

Steps
Review the initial analysis
Analyze how this aspects are addressed by the company
Learn how other companies adressed this aspects
Analize the current relations with stakeholders
Create the stakeholder profile
Decide what the company CAN and CAN’T do in relation with stakeholders
Develop an engagement plan for each relevant stakeholder or groups of stakeholders

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 Stakeholder identification

 Groups or sectors which are Nature

important for the organization
Lregulation bodyies
or which are interacting with Bio-diversity
Universities
the organization Users

 Groups which are having

Associations Environment
power over the organization Certification
Consumers

 Groups which are affected by Clients

Assurance Shareholders The board
the organization
NGO
Management
Consultants
Compania Unions Human rights
Comunities Employees
Families

Local Sub-suppliers
authorities Neighbors

Media

Local org.
Contractors Suppliers

Future
generations

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 Stakeholder management - basics

Stakeholder identification
Who they are? What they do? What they are interested in? What they believe in?
What are their objectives? What is their power over the organization or sector?

Stakeholder analysis
Relations. Importance. Impact on them. Impact on the
organization

Stakeholder engagement

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 Stakeholders typology

Business partners /
suppliers Investors

Consumers / Main
clients Local stakeholders
Employees
communities

Authorities Media
Unions
Secondary
stakeholders
Competition
NGOs

Stakeholders can be divided into key stakeholders that have a direct interest in the organization and its
success and secondary stakeholders, those that may have a significant influence on the organization
but whose interest in the organization's indirect or no.

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 Stakeholders relation analysis
 Defining influence on the organization
 Channels and media influence
 Type the influence (direct, indirect)
 Possible effects on the organization
 Defining organizational influence on
stakeholders
 Possible effects on stakeholders
 Channels and means of influence
 Defining the importance of relationship
 Absolutely necessary
 Required to attain x
 Necessary to maintain status quo
 Insignificant
• Defining the quality of the relation (+ or -)
• Conflict, collaborative, exploratory,
occasional
• Defining the intensity of the relationship
• Collaboration history (time)
• Frequent relations
• Relations results
• Defining critical aspects
• risks for organization
• potential events with relevant impact on
performance
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 Stakeholder mapping

high
Collaborators Owner

NGOs
Power Clients

Influence

Key
Employees
suppliers

Suppliers
Low

Low Interest, needs High

Green : positive
Yellow: neutral
Red: negative
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 Stakeholder engagement

High

Key groups
Satisfaction
(intensive dialogue)
Power
Influence

Minimum efforts Inform

Low

Low Interest, needs High

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 Improving the collaboration capacity

Improve the collaboration capacity of the company

Scope Develop collaboration capacity to improve the
engagement quality
Principles An adequate response depends on the collaboration
capacity of the organization

Steps
Get familiar with your stakeholders
Identify your strong points and how this are perceived by your stakeholders
Define the capabilities you need for a successful engagement
Identify the collaboration capacity of your stakeholders and the aspects you want to address
during the collaboration
Develop and engagement plan

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 Developing the engagement plan

Engagement
Scope Planning and implementing the engagement activities

Principii Act based on the knowledge and information you gather until
now. Act using your strengths
Steps
Define the engagement process (responsibilities, means, etc)
Define the best engagement method for each stakeholder of group
Prepare internally the engagement process
Start the engagement

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 Stakeholder engagement – the process

Pre-engagement Engagement

Identification Inform Consultation Inclusion Collaboration Empowerment

•media •flyers
monitoring •letters •forums
•complaints •Including
•Reports •direct talks •advisory •joint projects
•requests stakeholders in
•Classifieds •research groups •voluntary
•pprotests management,
•social Networks
•Events in the •focus groups •involvement in initiative
strategy and
•satisfaction level community •Workshop decision- •partnerships
operations
employees / •Speeches making
customers •presentations

Communication Joint development and implementation of SR projects

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 How do we start?

Engagement type Meaning

Communication in one direction in order to make known information Trust us

Consultation and dialogue through interactive communication channels Show us

Partnerships that create value and are geared towards identifying solutions Involve us, listen us

Communication Consultation Dialogue Partnership

Sharing of information Questionnaires Open forums Join-venture

Employee training Working groups Consultation panels Join projects

Projects dissemination Internal assessment Seminars Joint initatives

Reports, brochures Consultation with the On-line platforms Alliances

community
Newsletter Consultation forum
Webpage On-line forum
Organized conferences
Seminars, speaches

Porti deschise si intalniri

Organized tours
Press conference
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 Engagement tools
Tool Engagement
Assessment •Identify customers and employees perception
•Ex BT quizzed 19 million. Customers to learn how to
improve services
•Ex: Novo Nordisk employees surveyed in five countries
and published the results in the CSR Report
Ad hoc •Consultations to identify the views of stakeholders on
engagement CSR initiatives of the company
•Ex: A number of companies seek opinions on their CSR
reports
Consultation •Discussion forums with the local community, scientific
advisory committees, regular meetings with clients and
other activities of the same kind that provides external
information about company decisions
•Ex: Companies such as Dow Chemical, Intel Placer
Dome and Lafarge have created public consultation
panels near their offices environmental impact
Virtual •Online forums requesting opinions on the company's
aplications shares
•Ex: Shell is one of the first companies CSR report
posted on its website and asked the visitor feedback
Dialog
•Informal dialogue on specific topics NGO, local
community, experts, hosted by company
•Participation in the seminars organized by NGOs, local
authorities and other organizations
Advisory councils between the company and all those
interested in the company
Ex: Dow Chemical Advisory Council meets since 1991 to
advise the company on the environment and
sustainability viewers
Electricite de France has established an advisory board
to the group called Agenda 21, to discuss the
application of the 21 principles on sustainable
development
Networks are put in direct contact managers with
shareholders, employees and directors but
communication with stakeholders is still in its infancy
Ex: BT is one of the companies that pioneered the
discussion forums with stakeholders and currently
operates a forum for discussion on topics of interest to
the company
20
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 Succes factors

 Agreeing rules for collaboration

Chellenges
 Concentration + flexibility
 it takes time and resources
 Listen and be respectful!
 creates expectations
 Putting into practice the suggestions received
 addressing the right actors is difficult
 Maintaining relationships

Prepare Participate Maintain

Make sure that start the
collaboration is the proper
method of action
Bring appropriate
stakeholders at the same
table, maintain interest and
involvement rate
Allocate time and resources
necessary given the need to
educate some stakeholders
on complex issues
Be focused but flexible and clearly define the Act on the decisions you took
expectations
Listen and be respectful and allocate enough Continue and report the
time to know each other progress
Agree that you do not need to agree on all
points and some perceptions can not be
changed
Act in a transparent and quantifiable way

Establish collaboration rules,

establish responsibilities of
each party and make sure
that everyone involved
share risks and benefits

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 Action, analysis and reporting

Action, analysis and reporting

Scope Translation of aquired knowledge into actions

Principles This step is essential in providing a coherent and appropiate

response to stakeholders
Essential steps
Analysis of the results of the stakeholder engagement process
Developing an action plan for the next period
Reporting
Review of the entire process in order to identify options for improvement
Applying learned lessons.

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 References / Literature

 References:
 From Words to Action. The Stakeholder Engagement Manual .
 Volume 1: The Guide to Practitioner’s Perspectives on Stakeholder Engagement -
Stakeholder Research Associates Canada Inc. (July 2005)
 Vol 2: The Practitioner’s Handbook on Stakeholder Engagement - AccountAbility, the
United Nations Environment Programme, and Stakeholder Research Associates
(October 2005)
 ISO 26000:2010 - Guidance on social responsibility
 AA1000 Stakeholder Engagement Standard (AA1000SES)
Literature
 Elkington, John: “Cannibals with Forks: The Triple Bottom Line of 21st Century
Business” (Oxford Capstone, 1997)
 Freeman, R. Edward: “Strategic Management: A stakeholder approach” (Boston
Pitman, 1984)

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THANK YOU

Leonardo da Vinci – Transfer of innovation project

Leadership in Sustainability – Sustainability Manager
Nr. Contract: LLP - LdV / TOI / 2013 / RO / 022
Nr. Project: 2013-1-RO1-LEO05 – 28771

The project has been funded with support from the European Commission. This material reflects the
views of the author – the LeadSUS consortium – and the Commission cannot be held responsible for any
use which may be made of the information contained therein

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