Who decides what a Company should do? – Conclusion

december 3rd, 2012 · by John · Weblog EN

We have reached the conclusion of the series on “who decides what a company should do?” In the Stakeholder Analysis phase, we have defined the stakeholders and their interest or stake in our organization. The next step in this phase was to categorize stakeholders according to their willingness to cooperate with, and their power to influence, the organization.

We will now discuss discuss stakeholder management. The first step in the Stakeholder Management phase is to decide how to deal with the various groups of stakeholders. Based on that decision, we have to make plans and actions to realize the strategies.

I will clarify the methods for stakeholder analysis and stakeholder management by using an example of the management of a company dealing with one of the most important stakeholder: the employees.

Stakeholder and stakes: The interests of the employees are jobs, livelihood, career and human capital investments, their expectation are decent wages, security, benefits and meaningful work.

Power and Cooperation: Our business is in the service industry and service is a people business. We need highly qualified and motivated staff to carry out our activities. The industry is heavily unionized. We will qualify the power and influence of this stakeholder as high. Our employees are skilled and well educated. They understand the importance of a good service to our customers. If we meet their expectations, they will be cooperative.

Stakeholder strategy: The overall score is: high on cooperation and high on power. The strategy for this stakeholder therefore is: to meet employees’ expectations, in order to keep them cooperative.

Plans and Actions: We will offer our employees meaningful jobs, which will earn them a reasonable part of the revenues of the organization. Next to that we will invest in a safe and healthy work environment and create opportunities for personal and career development.

This method can be applied for every stakeholder. Below is an example of how this might look like for some of the stakeholders:

  • Shareholders: We will create shareholder value by working hard and responsibly to achieve superior financial results. We will be honest and accurate in measuring and reporting our performance, and we will protect the assets, resources and reputation of our organization.
  • Customers:  We will treat our customers fairly and honestly. We will maintain a high product quality, and will engage in responsible marketing and consumer information practices.
  • Employees: We are committed to fostering workplaces that are safe and professional and that promote teamwork, diversity, personal development and trust.
  • Environment:  We will keep on reducing the environmental impact of our activities, and we will promote the sustainable use of the natural resources on which we depend.

And now for the answer to the question: “Who decides what a Company should do?” You might already have guessed it, it is the stakeholders. In one of my next blogs I will discuss how we can merge the “decisions” of the stakeholders into the company’s mission statement.

John Greijmans

 

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