Defining and Prioritizing Stakeholders
Adopting a stakeholder orientation, weighing competing claims, and deciding whose interests take priority when they conflict.
- Adopting a stakeholder orientation
- Weighing stakeholder claims
- Ethical decision-making
- Corporate social responsibility (CSR)
- Shareholder versus stakeholder view
Prioritising the claims of stakeholders is one of the hardest tasks business professionals face. Considering only stockholders often produces unethical decisions; the impact on every stakeholder has to be identified and assessed.
Learning objectives
- Explain what it means to adopt a stakeholder orientation
- Weigh and rank competing stakeholder claims
- Apply an ethical decision-making process that prioritises stakeholders
- Describe corporate social responsibility and its limits
Notes
Stakeholder map template
Score each group on power, legitimacy and urgency; the groups scoring high on all three cannot be deferred.
The most common managerial error
Considering only stockholders, and only their short-term interests. Powerful shareholders can end a manager's tenure — which is exactly why the bias is so strong and so worth resisting.
CSR is not philanthropy
A mining company that ignores its responsibilities infringes the local community's right to clean air and water. CSR places all stakeholders in a proper framework rather than buying goodwill after the fact.
Reference notes for this topic.
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