BADM 4950 - Chapter 2
Role of Social Media is Stakeholder Engagement
- Address public issues and engage stakeholders - Identify and solve problems faster - Share information better among their employees and partners - Bring customers' ideas for new product designs to market earlier - Platforms to engage with multiple stakeholders, communication has become faster and more effective
organizing for effective issue management
- part of the organization is mobilized to address a particular emerging issue, it often depends on the nature of the issue itself - involve the board of directors and top management levels - effective global leadership on public issues requires 3 basic capabilities: - understanding of the changing business context - ability to lead in the face of complexity - connectedness: the ability to engage with external stakeholders in dialogue and partnership
issue management process
1. Identify Issue 2. Analyze Issue 3. Generate Options 4. Take Action 5. Evaluate Results
issue management process
A five-step process where managers identify the issue, analyze the issue, generate options, take action, and evaluate results.
Stakeholder engagement
An ongoing process of relationship building between a business and its stakeholders.
Performance-Expectations Gap
The perceived distance between what a firm wants to do or is doing and what the stakeholder expects. - permit the performances - expectations gap to grow - the larger the gap, the greater the risk of stakeholder backlash or of missing business opportunity
competitive intelligence
The systematic and continuous process of gathering, analyzing, and managing external information about the organization's competitors that can affect the organization's plans, decisions and operations; with the need to comply with all applicable laws, and to follow the professional standards of fairness and honesty
Environmental Analysis
a method that managers use to gather information about external issues and trends to develop an organizational strategy that minimizes threats and takes advantage of new opportunities
public issue
an issue that is of mutual concern to an organization and its stakeholders, sometimes called a social or sociopolitical issue
stages in business-stakeholder relationship
over time, the nature of businesses' 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
environmental intelligence
the acquisition of information gained from analyzing the multiple environments affecting organizations