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Corporate social responsibility

Stakeholders analysis
The Stakeholder Perspective
TRUST FOR EMPLOYEES

Generate Trust
RESPONSIBILITY FOR

Instil Pride

CREDIBILTY FOR
. THE COMMUNITY

Empower

. INVESTORS
Serve the Show Profit
Community Have Growth
Green the Prospects
Environment

Promote Quality
Provide Customer
Service
Adapted from
Fombrun (1998)

RELIABILITY FOR CUSTOMERS


Definitions
• Definition of stakeholder: “A stakeholder is an
individual or group influenced by – and with an
ability to significantly impact (either directly or
indirectly) – the topical area of interest” (Glicken,
2000).
• Definition of stakeholder analysis: technique that can
be used to identify and assess the priority, needs,
goals, and requirements of key people that may
significantly influence the success of the project.
Goal of stakeholders analysis
• A stakeholder analysis is used “to identify
stakeholders’ interests, their roles and
responsibilities and the participation strategy
necessary to involve them in the process. (…) A
stakeholder analysis ensures that key
stakeholders are not left out in the Participatory
Monitoring and Evaluation (PM&E) process and is
also an important step in the sharing of roles and
responsibilities for PM&E. “ (J. M. Njuki et al,
2007)
Types of stakeholders
• Primary stakeholder: are those which depend most directly on the issues
at stake, and are ultimately affected – positively and negative by any
intervention in the environment or thematic area for which the project is
to be developed.
Examples: groups with rights to property, resource users and traditional
resource management institutions.
• Secondary stakeholder: they do not directly depend on the issue at stake
but they have a major interest in the way the resource is managed and
utilised. Secondary stakeholders are likely to be intermediaries in the
environment or thematic area. Although they have an interest, they have
little mandate over the resources and less influence than primary
stakeholders.
• Key stakeholder: they are significantly influence or are they are
important to the success of any chosen intervention in the environment
or the thematic area, e.g. departments of government ministries
responsible for resources, etc.
Use a stakeholder analysis to:
• identify people, groups, and institutions that will influence the
achievement of project outcomes (either positively or
negatively)
• understand the viewpoints of these groups and the reasons
behind the influence they have on the project
• help each group to understand the views of others determine a
common vision of project outcomes that meet the largest
possible set of stakeholders desires while securing the project
goal
• develop strategies to get the most effective support possible
for the project and reduce any obstacles to successful
implementation
Stakeholder analysis rests upon thee basic
principles:
1. The impacts of a proposed action on stakeholder groups should be
assessed systematically.
The use of impact assessment techniques allows analysts to accumulate
reliable data on how stakeholder groups are likely to be affected by a
proposed action. This helps ensure that the decision makers receive
accurate information.
2. Stakeholder groups should be identified comprehensively. If any
stakeholder groups are omitted from the analysis, the findings will be
incomplete and inaccurate.
3. Stakeholder analysis information should be used to evaluate and modify
the proposed action. Stakeholder analysis information helps decision
makers weigh the costs and benefits of implementing an action as originally
proposed, and suggests ways to modify the action that can mitigate its
adverse impacts.
Steps in Analysing Stakeholders
1. Identify important stakeholders and their interests
2. Assess the power and influence of stakeholders in
relation to the project
3. Determine appropriate project response to each
stakeholder/group
4. Plan which stakeholders will participate in the
project cycle, when and how
5. Start to identify risks from stakeholders
6. Develop strategy for building participation and
stakeholder commitment.
Stakeholder analysis
• Step 1. Organize group brainstorming. Identify all the people,
groups, and institutions that will affect or are affected by your
initiative and list them in the column under "Stakeholder.„
• Problems may arise if heterogeneous stakeholders are
considered as a homogeneous group. For example, for
governmental stakeholders like the MoF or MoA, there may
be different departments within a Ministry that may have
conflicting views on issues affecting the project.
Stakeholder analysis
• Step 2. Once you have a list of all potential
stakeholders, review the list and identify the specific
interests these stakeholders have in your project.
Consider issues like: the project's benefit(s) to the
stakeholder; the changes that the project might
require the stakeholder to make; and the project
activities that might cause damage or conflict for the
stakeholder. Record these under the column
"Stakeholder Interest(s) in the Project.„
Stakeholders interests
1. What are their expectations?
2. What benefits will they accrue?
3. What resources will they commit (or avoid
committing) to the project?
4. Do they have other interests that might
conflict with the project?
5. How do they regard other stakeholders on
the list?
Stakeholder analysis
• Step 3: Now review each stakeholder Ask the
question: how important are the stakeholder's
interests to the success of the proposed project and
how strong is their influence? Consider:
• The role the key stakeholder must play for the project
to be successful, and the likelihood that the
stakeholder will play this role
• The likelihood and impact of a stakeholder's negative
response to the project
Stakeholder analysis
Variables affecting stakeholders' relative power and influence
Within and between formal organisations
• Legal hierarchy (command and control, budget holders)
• Authority of leadership (formal and informal, charisma,
political, familial or cadre connections)
• Control of strategic resources for the project (eg. suppliers of
hardware or other inputs)
• Possession of specialist knowledge (eg. engineering staff)
• Negotiating position (strength in relation to other stakeholders
in the project)
Stakeholder analysis
Influence
low high

A B
Stakeholders of high Stakeholders appearing to
have a hig degree of influence
importance to the project, on the project, who are also
high but with low influence. This of high importance for its
implies hat they. will require success. Th project will need
special initiatives if heir to construct good working
relationships with these
interests are to be protected stakeholders, to ensure an
effective coalitio of support
Importance for the project.
D C
low Stakeholders in this box, Stakeholders with high
with low influence on, or influence, who can therefore
importance to project affect the project outcomes,
objectives may require but whose interests are not the
limited monitoring or target of the project. They may
evaluation, but are of low be a source of significant
priority. They are unlikely to risk, and they will need careful
be the subject of project monitoring and management.
activities or management
Stakeholder analysis
• Step 4. By assessing the influence and importance of
key stakeholders (Step 3), some risks emerge from
the matrix diagram. In general, risks will be evident
from those stakeholders in box C which have high
influence, but interests which are not in line with
project objectives. These key stakeholders may be
able to "block" the project, and if this is probable,
the risk may constitute a "killer assumption".
Involvement
• Increase the involvement of stakeholders who have
significant influence - use them as allies; use a
confidante approach; involve them more and ensure
they are well-informed about the change
• Increase the support of ‘neutral’ people - may need
to consider ‘what’s in it for them’?
• Aim to eliminate resistance - try to make influential
resistors at least neutral
Communicating with Stakeholders

• The end product of a stakeholder analysis is a


communication plan that forms part of the
overall project plan.
• Communication effort, mode and frequency
depends on the cost and the level of influence of
the stakeholder. Some will require simple and
infrequent updates, others will require regular,
detailed and frequent communications.
• Information will need to be tailored to effectively
communicate with, and sufficiently inform,
different stakeholder groups.
Communications tools and channels
can include:
• Formal Meetings – with powerful stakeholders
• Informal Meetings – with interested people
• Mailing list – to disseminate information to
people on project progress
• Newsletters – either through the mailing list,
email or printed – more information
• Information displays – visual representation of
project progress in public venues
Communicating with Stakeholders
• Web site – regular updates of project information for ‘self
service’
• Individual briefings – for those with more interest who are
prepared to attend
• Tours and Demonstrations – for interested external people and
organisations
• Public forums – more appropriate where there are community
stakeholders
• Media releases – report on achievement of signigicant project
milestones
• Advertisements and Postings – Newspapers, magazines, notice
boards
• Liaison Committee – Representatives of larger groups.
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