The document discusses stakeholder relationships, social responsibility, and corporate governance. It provides details on three activities involved: 1) generating data on stakeholders and impacts, 2) disseminating information throughout the organization, and 3) the organization's responsiveness to stakeholder concerns. Key points include identifying relevant stakeholders and their concerns, evaluating impacts, facilitating communication of information to stakeholders, and ensuring the firm addresses stakeholder expectations.
2. “Degree to which a firm understands & addresses
stakeholders demands & concerns”
Three set of activities are involved;
I. Generating data about stakeholders & impacts on them
II. Disseminating information throughout the organization
III. Organization’s responsiveness towards stakeholders’
concerns
3. Identifying stakeholders that are relevant
Characterizing their relevant concerns
Online Forums
Representatives
Concerned Managers
Evaluating impact
4. Facilitating communication of information
Distributing information about;
Nature of relevant stakeholders
Stakeholder issues
Current impact on firm
Distribution of information should be formally
5. Consists of initiatives that a firm adopts to ensure that
it abides by or exceeds stakeholder expectations & has
a positive impact on stakeholders’ concerns
Involving concerned stakeholders on Priority basis
6. meeting overly aggressive financial or business
objectives
meeting schedule pressures
helping the organization survive
rationalizing that others do it
resisting competitive threats
saving jobs
7. personal values
supervisor influence
senior management influence
internal drive to succeed
performance pressures
lack of punishment
friends/coworker influence
8. I. Conflict of Interest
II. Honesty and Fairness
III. Communications
IV. Organizational Relationships
9. exists when an individual must choose whether to
advance his/her own interests, the organization’s, or
others’
Examples include bribes or personal payments, gifts,
or special favors intended to influence decision making
10. following applicable laws a regulations & not
knowingly harming stakeholders
Is advertising prescription drugs on TV and in
magazines fair?
11. refers to the transmission of information and the
sharing of meaning
Examples: deceptive advertising, product safety
information, & product composition
12. behavior of organizational members toward
stakeholders
Includes confidentiality, meeting obligations &
deadlines, not pressuring others to behave unethically
14. CSR can improve profits?
CSR can promote respect for their company in the
marketplace which can result in higher sales, enhance
employee loyalty and attract better personnel to the
firm
CSR activities focusing on sustainability issues may
lower costs and improve efficiencies as well
15. Philanthropic: “giving back” to society
Ethical: following standards of acceptable
behavior as judged by stakeholders
Legal: abiding by all laws & government regulations
Economic: maximizing stakeholder wealth and/or value
16. Formal systems developed by organizations for
Accountability, Oversight & Control
Accountability- How closely workplace decisions are aligned
with firm’s strategic goals & objectives
Oversight- A system of checks and balances that limit
employees’ opportunities to deviate from firm’s goals
Control- Process of auditing and improving organizational
decisions & actions
17. Organizations should develop some processes for managing ethical
concerns of stakeholders
The most effective process consists of following steps;
I. Assessing the Corporate Culture
II. Identifying Stakeholder Groups
III. Identifying Stakeholder Issues
IV. Assessing Organizational Commitment to Social Responsibility
V. Identifying Resources & Determining Urgency
VI. Gaining Stakeholder Feedback
18. Must align with organization’s goals & objectives
First step is to identify organizational mission, norms & values
Sources -
Mission Statement
Annual Reports
Sales brochures
Websites
“Example”
19. Goal is to recognize stakeholder needs, wants &
desires
Level of power may vary, depending upon the nature
of involvement of stakeholders
Some Power vs. Most Power
Example
20. Understanding the nature of the main issues of concern
to the stakeholders
Can be settled down through;
Collaboration
Negotiation
“Example”
21. How much the organization is inclined towards being socially
responsible?
Brings first three stages together to arrive at a common
understanding of social responsibility
Evaluating current practices
Selecting concrete social responsibility initiatives
Sources - Annual Reports, Webpages & Company Brochures
22. Cost-Time ratio
Two main criteria to be considered;
- Level of Financial & Organizational resources
- Level of urgency when prioritizing
If an issue requires significant resources, it is to be
considered “Urgently”
23. What is stakeholder’s level of satisfaction?
Can be through various ways;
- Satisfaction & reputation Surveys
- Blogs, Websites & Newsletters
- Formal Research via focus groups, observation &
surveys