Social media provides a megaphone for organizations intent on shaping the corporate environment

Abstract

Purpose – The author offers a leaders' guide to managing relations with “shapeholders” the political, regulatory, media and activist actors in the firm's operating environment that shape, constrain, or expand a firm's opportunities and raise certain risks. Design/methodology/approach – The author, a former US congressman, shows how companies can adopt a program of analysis, foresight and preparation, and successfully engage shapeholders to advance mutual goals and preempt open conflict. Findings – The author warns that seeking unjustified advantage for your company or industry often trades transient benefits for long-term risks and reduced standing in seeking a level playing field in international markets. Practical implications – The author suggests several practical preparation techniques, citing the need to train for a rapid response to shapeholder pressures in today's hyper-connected world. When a controversy goes viral on social media, it's too late to debate options, policy and tactics. Originality/value – Leaders can use the author's WinWin Shapeholders Decision Matrix and other models introduced in the article to analyze and prepare for shapeholder interactions in advance.