Abstract
Stakeholders have been broadly described as those people or groups with an interest in the outcomes of the actions taken by others, which includes actions by commercial businesses, not-for-profit organizations, and those of all levels of government as well as their delegated representatives. In considering their role the types and classification of stakeholders has become increasingly important to the efficient management of the public policy planning process, particularly in the tourism industry with its very diverse stakeholder population. In recent decades research on stakeholders in public policy making has been described in detail (through studies of attributes, interests, and influences) and has sought to categorize stakeholders (especially in identifying who should be a stakeholder and who is a genuine stakeholder) to better manage the consultative process involved. Using the process of constructing a strategic plan for the government controlled ski resorts in the State of Victoria (Australia) which involved substantial involvement from the public, businesses, property lessees and skiing enthusiasts, this paper reviews the utility of currently used stakeholder classification schema from both a theoretical and practical viewpoint and posits that a better approach to understanding differences would consider the behavioural variations between the stakeholder groups as they participate in the consultative phases of the process. It concludes that public policy managers can improve their understanding of potential stakeholder responses and proactively engage these people and groups in the public policy planning process by understanding the impact of the outcomes and nurturing their different levels of involvement and on-going support. This can be expected to improve acceptance and support of final policy decisions that are made, especially when difficult compromises between alternatives are required.
Highlights
Stakeholders, commonly perceived as a homogeneous section of the population, are described as people, groups or organizations with any interest or involvement in ‘something’ such as the performance of a business entity, the actions of a public organization such as government, non-government and semi-government departments), the decisions of a community or the organization of special interest group activities
The following analysis is based on the research conducted on the initial policy formulation (2004) for the future of the ski industry in the State of Victoria (Australia) and involved interviews with stakeholders to assess the nature of their interaction with policy makers and their opinions and attitudes to the planning document that was adopted (ARCC & Tourism Victoria, 2013)
Each provides a broad scope for describing the diverse nature of, and relationships between stakeholders in the development and implementation of complex strategies that combine all the elements of stakeholder theory, including stakeholder relationships and stakeholder management raised by various writers over the last three decades
Summary
Stakeholders, commonly perceived as a homogeneous section of the population, are described as people, groups or organizations with any interest or involvement in ‘something’ such as the performance of a business entity (as shareholder, customer, or employee), the actions of a public organization such as government, non-government and semi-government departments), the decisions of a community (on issues such as residential, education, safety, and public transport alternatives) or the organization of special interest group activities (including arts, hobbies, sports and recreation). Normative research focuses on the moral and social obligations of managers to behave in an ethical manner towards stakeholders, instrumental describes how organizations pursue their interests and improve performance through managing their relationships with stakeholders, and descriptive considers the actual behaviour of managers, their organizations and the stakeholders involved For the latter the identification and categorization of stakeholders becomes just one part of the issue (Butterfield, Reed, & Lemak, 2004; Cooper, 2003; Donaldson & Preston, 1995; Friedman & Miles, 2004, 2006). Useful for complex public orientated interventions where conflicting ideas will be evident in the community
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