Chapter 2 Powerpoint

Drivers of Stakeholder Engagement

-At its core, stakeholder engagement is a relationship -The participation of a business organization and at least one stakeholder organization is necessary, by definition, to constitute engagement -Engagement is most likely when both the company and its stakeholders both have an urgent and important goal, the motivation to participate, and the organizational capacity to engage with one another

The Issue Management Process

-Identify Issue -Analyze Issue -Generate Options -Take Action -Evaluate Results

Making Engagement Work Effectively

-In stakeholder dialogue, a business and its stakeholders come together for face-to-face conversations about issues of common concern -Corporations sometimes encounter public issues that they can address effectively only by working collaboratively with other businesses and concerned persons and organizations in stakeholder networks -Engaging with stakeholders benefits businesses by bringing in expertise, enhancing legitimacy, and generating creative solutions to common problems

Stages in the Business-Stakeholder Relationship

-Over time, the nature of business's relationship with its stakeholders often evolve through a series of stages Inactive: Companies ignore stakeholder concerns Reactive: Companies act only when forced to do so, and then in a defensive manner Proactive: Companies try to anticipate stakeholder concerns Interactive: Companies actively engage stakeholders in an ongoing relationship of mutual respect, openness, and trust

Organizing for Effective Issue Management

-Which part of the organization is mobilized to address a particular emerging issue often depends on the nature of the issue itself A corporation's issue management activities are usually linked to both the board of directors and to top management levels -Effective global leadership on public issues requires three basic capabilities 1.Understanding of the changing business context 2.Ability to lead in the face of complexity 3.Connectedness- The ability to engage with external stakeholders in dialogue and partnership