Abstract
Stakeholders face many different risks that arise from any business activity. The stakeholder management approach is the process by which is organised, monitored and improved relationships with business stakeholders. It involves systematically identifying stakeholders; analysing their needs, expectations; planning and implementing various tasks to engage with them. Most definitions of stakeholder management tend to focus around the idea of how could stakeholders be managed in order to get them to do what is equired. The emphasis is placed on creating a stakeholder management plan that maps the level of interest and influence of stakeholders and list various levels of engagement for the different groups. This paper applies a case study methodology presenting the Wal-Mart case and the Malden Mills case to reflect the implications of stakeholder management in companies. The findings indicate the positive but also the negative implications which result when various stakeholders are neglected, and, conversely, the benefits when stakeholders are effectively engaged in corporate activities. It concludes that effective stakeholder management contributes to risk management and reputation management, as well as, to corporate social responsibility.
Highlights
The management of stakeholders as well as their relationship with a given company has become a crucial matter for public relations practitioners, and scholars and academics researching the topic
There are two sides to every coin Tannen (1998) suggests a shift from debate to dialogue rather than fighting and heated discussion. This means that people need to start listening rather than just hearing because dialogue is the foundation for integrating diverse views in order to form solutions for complex problems. that we have covered some of the relevant theoretical elements, we may begin to make the argument that the stakeholder management approach is a multifaceted strategy that serves as an effective risk management policy and simultaneously fulfills the objectives of various other management policies as well
This supports our argument that the stakeholder approach is a diverse and multifaceted business method that simultaneously meets the objectives of risk, crisis, and reputation management while fulfilling corporate social responsibility and still increasing shareholder value
Summary
The management of stakeholders as well as their relationship with a given company has become a crucial matter for public relations practitioners, and scholars and academics researching the topic. Successful corporate leaders have long understood the importance of hearing and reacting to concerns from their clients as well as the general public so that they can capitalize on new opportunities while simultaneously anticipating and mitigating crises before they fully develop (Post, Preston, and SauterSachs 2002). Despite this fact, sectors such as risk and crisis management are relatively new corporate functions that have become increasingly more commonplace in the years post World War II (Dionne 2013)
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