Stakeholders

Stakeholders Focus

1. Stakeholders Focus Yeganeh Majidi NOV. 2015

2. Who are involved in business activity? Various groups of people have an interest in business. Such groups are referred to as stakeholders. They include: Owners or shareholders Managers Employees Customers Government Suppliers The community Competitors

3. Business Owners Business Owners Entrepreneur Shareholders Directors Managers Employees Individuals Institutional Investors Other Companies A Summary of Business Owners

4. What are stakeholders? People or organisations with a special interest in a business. This is normally because they are directly affected by the business and how it operates – both now and in the future.

5. Relationships and Business Building relationships is one of most important areas in business today Can be associated with organizational success and misconduct Stakeholder framework Helps identify internal and external stakeholders Helps monitor and respond to needs, values, and expectations of stakeholder groups

6. Internal Stakeholders External Stakeholders

7. Stakeholders are individuals or organizations that are affected by the consequences and outcomes of decisions. Internal stakeholders are those within an organization with an interest in its success and failure, since they may be rewarded or punished accordingly. Internal stakeholders include employees, managers, executives, and stockholders and other owners. Internal Stakeholders

8. External stakeholders are individuals, groups, and entities from outside that are affected by the consequences and outcomes of an organization's decisions. External stakeholders include customers, suppliers, governments, and communities. External stakeholders can exercise different types of power over an organization and try to influence its decisions through applying economic or political pressure . External Stakeholders

9. The Stakeholder Interaction Model

10. Stakeholder Orientation The degree to which a firm understands and addresses stakeholder demands Three activities: Generation of data about stakeholder groups Distribution of the information throughout the firm Organization’s responsiveness to this intelligence

11. Social Responsibility Is an organization’s obligation to maximize its positive impact on stakeholders and minimize its negative impact Four levels of social responsibility: Economic Legal Ethical Philanthropic

12. Social Responsibility and the Importance of Stakeholder Orientation From a social responsibility perspective , business ethics embodies standards, norms, and expectations that reflect concerns of major stakeholders Social responsibility is associated with: Increased profits Increased employee commitment Greater customer loyalty

13. Best and Worst Companies for Social Responsibility

14. Implementing a Stakeholder Perspective Assessing the corporate culture Identifying stakeholder groups Identifying stakeholder issues Assessing organizational commitment to social responsibility Identifying resources and determining urgency Gaining stakeholder feedback

15. Power and influence Some stakeholders are powerful . They can influence how the business operates. Some stakeholders have little power. The business can virtually ignore their views.

16. Stakeholder interests 1 All stakeholders have different types of interests: Customers – price, quality, range of supplies, opening hours, facilities, etc Employees – pay, working conditions, job security Owners/shareholders – profit, share price, dividends The local community – road building, pollution, safety, house values, jobs

17. Stakeholder interests 2 Government – legal issues, environmental issues, competition Pressure groups – interests of members and those they represent Suppliers – price paid for their supplies, further orders Financiers – profits, return on money invested, repayments of loans

18. Conflict and stakeholders Local community against expansion of business, employees want job security Shareholders want high dividends, managers want to use profits for investment Suppliers want high prices for goods they supply, customers want low selling prices Stakeholders with different interests may be in conflict, eg

19. The role of the entrepreneur as a stakeholder Innovation Organization Risk taking

20. Types of stakeholders The government The local community Owners and shareholders Employees and managers Customers Financiers Pressure groups Suppliers Stakeholders

21. Types of Shareholders Directors Managers Employees Individuals Institutional Investors Other Companies

22. Other Stakeholders Customers Suppliers Government Community

23. Stakeholders and their objectives Stakeholder Main Objective Directors To direct the strategies and major decision making of the business. To retain control. To increase their own power and status from business growth. Shareholders To receive dividends from after- tax profits. To share in the success/profitability of the business through an appreciating share price. Workforce To receive a fair wage. To ensure good working conditions. To secure their jobs through the survival and expansion of the business.

24. Stakeholders and their objectives Stakeholder Main Objective Customers To obtain good value for money from the goods and services purchased. To receive high levels of customer service. To receive after sale service and supply of spares from businesses which survives into the future. Suppliers To continue to sell profitably to the business. To be paid promptly and fully for the goods supplied. Bank Lenders To be paid back in full when repayments are due. To receive interest on loans when due.

25. Stakeholders and their objectives Stakeholder Main Objective Community To benefit from employment the business creates. To be free from environmental disadvantages the firm might create. Government To receive tax revenues from profitable firms. To direct the operations of the business for the benefit of the community/nation. To control business operations and performance to ensure it remains within national laws. To assist businesses in accordance with national and local policies. Competitors To compete by all lawful means. To differentiate its products from those of other businesses. To compare and contrast performances with other businesses.

26. Stakeholder-communication matrix The stakeholder communication matrix is a tool that displays the SR communication with stakeholders. It enables the organization to obtain an overview of the SR issues and the required communication about those issues with stakeholders. The matrix uses important input from the issue matrix. The matrix has a twofold objective: Providing an overview of the SR communication with stakeholders ; Involving the organization and assigning those responsible.

27. Examples of Stakeholders   Representatives from Organizations/Institutions Pain & cancer advocacy groups (i.e., ACS, POPAN, Livestrong Army) National professional associations (i.e., AMA, APS, AAPM, FSMB) State professional organizations/chapters (i.e., State Pain Society, State Medical Society, ASPMN chapter, ONS chapter, State Hospice and Palliative Care group) Cancer Centers Hospitals Long Term Care facilities Hospices Granting agencies (i.e., RWJ, community foundations)

28. Examples of Stakeholders Representatives from State Government Boards of medicine, nursing, pharmacy, & dentistry Department of Justice Public health departments Controlled Substances Board Attorney General’s office Governor’s office Departments of Regulation and Licensing   Representatives from Industry Insurance companies Pharmaceutical companies Medical device and equipment companies

29. Examples of Stakeholders Health care providers Physicians Nurses Pharmacists Social Workers Alternative Medicine Providers Physical Therapists Nursing Assistants   Other Individuals Health care administrators Academics Health Educators Policy makers Media professionals Persons with pain Caregivers & family members Law enforcement Business/finance professionals

30. Thank you!