BUSINESS IN SOCIETY

STAKEHOLDERS, ETHICS, PUBLIC POLICY

David Lobo
International College of the Cayman Islands
 THE CORPORATION AND ITS
STAKEHOLDERS
Business and Society
The Stakeholder Theory of the Firm
Stakeholder Analysis
The Dynamic Environment of Business
 BUSINESS AND SOCIETY

What is a business?
Organization that makes products or provides services for profit.

What is society?
Segments of humankind, i.e., community, nation, or interest group.
 THE STAKEHOLDER THEORY OF THE FIRM

The Stakeholder Concept

Different Kinds of Stakeholders
Market stakeholders
Nonmarket stakeholders
A FIRM AND ITS STAKEHOLDERS

Employees
Non Creditors
Governmental
organizations

Customers

Business
Stockholders
Firm

Governments
Competitors

Suppliers
 STAKEHOLDER ANALYSIS

Who are the relevant stakeholders?

What are the interests of each Stakeholder?
What is the power of each stakeholder?
How are coalitions likely to form?
 THE DYNAMIC ENVIRONMENT OF BUSINESS
Forces That Shape the Business and Society Relationship
Evolving
Government
Regulation
Of Business

Growing
Emphasis on
Ethical Values

Business
and Its
Stakeholders
 MANAGING PUBLIC ISSUES AND
STAKEHOLDER RELATIONSHIPS
Public Issues
Environmental Analysis
Organizing for Effective Issue Management
Stakeholder Engagement
Stakeholder Dialogue
 PUBLIC ISSUES

Mutual concern to one or more stakeholders

Executive compensation:
Consumer safety:
Race relations:
 ENVIRONMENTAL ANALYSIS
Method used by managers to gather information about external issues and trends to develop strategies that
minimize threats and take advantage of new opportunities.

Eight Strategic Customer

Radar Screens Geophysical Environment Competitor
Environment Environment

Legal Seeking Economic

Environment Environmental Environment
Intelligence

Political Technological
Environment Environment
Social
Environment
ORGANIZING FOR EFFECTIVE ISSUE MANAGEMENT

IDENTIFY ANALYZE
ISSUE ISSUE

EVALUATE GENERATE
RESULTS OPTIONS

TAKE
ACTION
 STAKEHOLDER ENGAGEMENT
Process of ongoing relationship building between a business and its stakeholders

Stages in the Business-Stakeholder Relationship

Inactive companies
Reactive companies
Proactive companies
Interactive companies
 STAKEHOLDER ENGAGEMENT

Drivers of Stakeholder Engagement

Goals
Motivation
Organizational Capacity
 STAKEHOLDER DIALOGUE

Stakeholder Networks
The Benefits of Engagement
 REFERENCES

Lawrence, A. T., & Weber, J. (2017). Business and Society: stakeholders, ethics, public policy (15th
ed.). New York, NY: McGraw-Hill, Irwin.
Project-Management.com. (2017, January 25). What is Stakeholder Analysis? Retrieved
from http://www.citationmachine.net/bibliographies/249830746?new=true
Brydle, M., & Urdangarin, J. (2017, June 20). The 5 keys to successful stakeholder
engagement. Retrieved from https://www.greenbiz.com/article/5-keys-successful-
stakeholder-engagement