Stakeholders people to consider

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Stakeholders people to consider

• LEED1110 Exploring Social Enterprise

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Social Entrepreneurs have a vision but there are
some constraints

• What is a stakeholder?
• Why and how do they impact on an enterprise?
• Who are the stakeholders?

3
It is not just your business Stakeholder
Definitions

• Any group or individual that can affect, or is
  affected by, the performance of the organisation
  (Freeman 1984)
• Individuals or groups who depend on the
  organisation to fulfil their own goals and on
  whom, in turn, the organisation depends.
  (Johnson Scholes 1999)
• The firm is a system of stakeholders operating
  within the larger system of the host society that
  provides the necessary legal and market
  infrastructure for the firms activities.
  (Clarkson, 1994)

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Tensions Pulls
Corporate Governance Who should the
organisation serve? How should purposes be
determined?
Ethical Aims
Which purposes should be prioritised and
why?
Your Enterprise
Mission Objectives
Cultural context
Shareholders Whom does the organisation
serve?
Which purposes are prioritised and why?
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Should enterprises know about Stakeholders?

• Failure to account for stakeholders often leads
  to poor performance, failure or even disaster
• Nutt (2002) analysis of 400 strategic decisions
  half failed because didnt attend to interests
  and information held by key stakeholders.
• Enterprises may start local but may be connected
  regionally, nationally and internationally
• Things change markets, transport, people,
  regulations.

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Stakeholder Groups

• Primary stakeholders shareholders, investors,
  employees, contractors, customers and suppliers
• Secondary stakeholders media, action groups,
  government agencies, trade unions, regulatory
  authorities, those who influence or affect, or
  are influenced or affected by the enterprise

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Different Types of Stakeholders
Secondary social stakeholders
Primary social stakeholders
Government
Social pressure groups
Local communities
Suppliers
Trade Unions
Customers
Investors
Competitors
Employees
Enterprise
Media and commentators
Environmental pressure groups
Natural Environment
Non- human species
Animal pressure welfare groups
Future generations
Secondary non-social stakeholders
Primary non-social stakeholders
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Managing your enterprise

• Identify stakeholders and identify key
  individuals
• Identify the orientation of different
  stakeholders
• Establish political priorities and trends in the
  political environment
• Assess the strength of the stakeholder influence
  on the company behaviour
• Evaluate stakeholder attitudes towards the
  business mission, strategies, activities
• Identify potential strategies to influence the
  perceptions of individual stakeholders
• Win over antagonistic stakeholders

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Stakeholder Mapping The Matrix

• Level of interest

High
Low
Low
A
B Minimal Effort Keep
informed C
D Keep satisfied Key
players
Power
High
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The Definition of Power

• The extent to which individuals or groups are
  able to persuade, induce or coerce others into
  following certain courses of action.
• (Johnson Scholes 1999)

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Group Task Start Stakeholder Mapping

• Divide into groups of five
• You are launching a new product / service
• Step 1 Who are the interested parties
• Step 2 Plot stakeholders in terms of their level
  and nature of interest and power on the Flipchart
• Step 3 Who needs your immediate attention and
  why
• Step 4 How will you keep them happy?

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Products / Service

• Your choice
• Coffee Shop on the ground floor of the Henry
  Price residence
• Headingley Community Transport cycles when you
  want them
• Nature reserve on Woodhouse Moor

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Innovation and Me

• Innovation is generally seen as positive
• Negative perceptions, tend to focus on
  constraints and risks
• Key words linked to innovation
• different, creative, particular / new ways of
  working, advances in technology, people driven,
  reward, risk, flexible, efficiency gains,
  developmental, culture of innovation.

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Social Innovation in public and private sector

• Private sector innovation is often contained
  within a single enterprise or cost centre
• Public sector systems are likely to be more open
  and more complex.
• The public sector operates generally under a
  regulated framework, which may limit scope for
  innovation.
• But in both arenas
• A mix of people and skills are needed.
• One innovative project does not equate to an
  innovative culture.
• A thorough understanding of customers' needs is
  essential.
• 'Celebrating' success feeds back into and
  reinforces innovation.
• innovation is perhaps more challenging in the
  public sector.

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Innovation and Me

• Where do I fit with these ideas.
• Testing enterprising potential GET test
• http//www.get2test.net/test/index.htm
• Have a go and then write in your log books about
  the outcomes, and how you feel about it. There
  is an extensive literature about the GET test,
  remember its value is to help you sort out how
  you think about enterprise and getting involved.

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References

• Clarkson, M.B.E. (1994). A Risk Based Model of
  Stakeholder Theory. The Centre for Corporate
  Social Performance and Ethics. University of
  Toronto.
• Freeman R.E. (1984). Strategic Management A
  Stakeholder Approach. Boston Pitman.
• Johnson, G. and Scholes, K. (1999).
  Exploring Corporate Strategy (Fifth Edition).
  Harlow Prentice Hall.
• Nutt, P. (2002) Why Decisions Fail Avoiding
  the Blunders and Traps That Lead to Debacles. San
  Francisco Berrett-Koehler