2. Defining stakeholders
Stakeholders are ‘any group or individual who
can affect or is affected by the achievement of
the organization’s objectives’ (Freeman 1984)
Those individuals with explicit or implicit
contracts with the organisation. Identified
through the actual or potential harms and
benefits that they experience or anticipate
experiencing as a result of the organisation’s
actions or inactions (Donaldson & Preston 1995)
3. Understand the classic view
INVESTORS
CUSTOMERS
EMPLOYEES
SUPPLIERS organisation
(Friedman, 1970)
"there is one and
only one social
responsibility of
business–to use it
resources ... to
increase its profits
so long as it stays
within the rules of
the game...
without deception
or fraud.”
4. Understand the stakeholder view
INVESTORS
CUSTOMERS
EMPLOYEES
SUPPLIERS organisation
(Donaldson and Preston, 1995)
“...persons or
groups with
legitimate interests
in participating with
an enterprise do so
to obtain benefits
and that there is no
[immediate] priority
of one set of
interests and
benefits over
another.. (p. 68)”
GOVERNMENTS ACTIVISTS
COMMUNITIESPEERS
5. Stakeholder mapping
Stakeholder analysis is an essential part of
assessing who the priority stakeholders are (who to
listen to) and the associated engagement plan.
The most common way of doing this is using a
stakeholder mapping.
7. Box A
These are stakeholders which appear to
have a high degree of influence over the
success of the company. This implies that
WW will have to construct a good working
relationship with these stakeholders, to
ensure an effective coalition for the
support of the project.
TOOL Five Capitals
9. Box B
These stakeholders are of high importance
to the success of the company, but with
low influence. This implies that they will
require special initiatives if their interests
are to be protected. Those which have
little “voice”.
11. Box C
These are stakeholders with high
influence, who can therefore affect the
success of the company, but whose
interests are not necessarily aligned.
These stakeholders may be a source of
significant risk, and will need careful
monitoring and mangement.
13. Box D
These stakeholders have low influence or
importance to the company. These may
require some monitoring and evaluation,
but are low priority.
14. Process
1. Make a list of all the stakeholders
2. Rank each of the stakeholders on a scale of 1-5, according to the
criteria “importance of stakeholder” and “influence of stakeholder”
3. Insert into matrix
4. If you find yourself scoring every thing highly try ranking items to
ensure they are spread out more evenly
5. Are there any surprises?
6. What are the issues /potential issues arising from the various
stakeholder groups
7. Which stakeholders do WW currently have the most/least contact?
8. Which stakeholders might need special efforts to ensure
engagement?