This topic will give the details knowledge about Business stakeholder and approach to society

1. THE STAKEHOLDER APPROACH TO
BUSINESS, SOCIETY, AND ETHICS

2. Origins of the Stakeholder Concept
The stakeholder concept has become a
key to understanding business and
society relationships.

3. • Stake holding exclusively part of gambling(
Early 18th century)
• Primacy of the stakeholder( Late 19th century)
• Manager as trustees, balancing multiple
communities(In 1940s )
• Stakeholder identified as a concept( Early
1960s)
• To diversify incorporate stake holding into
corporate strategy (1960s)
Free man writes Strategic management a stake
holder approach(In 1980s)

4. • Tony Blair describe a stakeholder economy(mid
1990s)
• Stakeholder engagement starts to emerge as a
managerial and professional discipline(In 2010)
What Is The Stake In Stakeholder
A stake is an interest in or a share in an undertaking.
Types of Stakes
1. An Interest
2. A Right ( Legal right and Moral right)
3. Ownership

5. Evolution of stakeholder

6. A stakeholder is an individual or a group that has one or more
of the various kinds of stakes in the organization
Who are business stake holders ?
From the business point of view ( stakeholder, employees, and
customer)
From the point of view of a highly pluralistic
society(community, competitors, suppliers, special-interest
group, the media and the society)
What is Stakeholder?

7. Stakeholder also can be those groups like
Natural environment, Nonhuman species and
future generations
Developing a stakeholder culture
Stakeholder embraces the beliefs ,values , and
practices that organizations have developed for
addressing stakeholder issues and relationship.

8. There are five categories of stakeholder culture
1. Agency culture (does no concern with
others)
2. Limited morality- corporate egoist
3. Instrumentalist( profit maximization)
4. Moralist
5. Altruist

9. The stakeholder approach to
business, society and ethics
 Stakeholder
 Business
 Ethics
 Business ethics

10. The production, Managerial
and the stakeholder views of
the firm

14. APPROACHES OF STAKEHOLDER
MANAGEMENT VIEW
• Strategic views
• Multi fiduciary views
• Synthesis views

15. STRATEGIC VIEWS
Suppose in an organization some employee
impede firm’s activity then in which way the
firm’s authority will handel it or how they can get
a solution this process called strategic views.
Characteristics:
1.It is a primary views.
2.Authority try to manage any problem.
3.Here authority take action against or
forstakeholder.

16. Multi fiduciary views
Multi fiduciary means every firms have some
fiduciary responsibility to its stakeholder. That
responsibility can be economical responsibility or
other sides responsibility.
Characteristics :
1.Stakeholders wield legal or economic power.
2.Maintain fiduciary obligations.
3.Observe stakeholders working environment.

17. Synthesis approach view means a firms have
some moral responsibilities to its stakeholders.
Characteristics:
1.In this view stakeholder considered
ethically.
2.It is not related to fiduciary views.
3.It try to keep stakeholder intact.
SYNTHESIS VIEWS

18. Three values of stakeholder model
• Descriptive value
• Instrumental value
• Normative value

19. Descriptive value
• The stakeholder model has value because it is
descriptive. That is, it provides language and
concepts to effectively describe the
corporation or organization.

20. Instrumental value
• The stakeholder model has value because it is
instrumental. It is useful in characterizing the
relationship between the practice of
stakeholder management and the resulting
achievement of corporate performance goals.

21. Normative value
• The stakeholder model has value because it is
normative. In the normative perspective,
stakeholders are seen as possessing value
irrespective of their instrumental use to
management.

22. EFFECTIVE STAKEHOLDER
MANAGEMENT
• Effective stakeholder management is that
process which is necessary to implement the
required of management of stakeholder to
accept the production or managerial view of
the firm.

23. • Level 1- The Rational level
• Level 2- The Process Level
• Level 3- The Transactional Level
STAKEHOLDER MANAGEMENT
CAPABILITY

24. The Rational Level
• This level helps to identify the stakeholders of
the firm as well as the stakes of that particular
stakeholder.

25. The Process Level
The process level includes the developing and
implementing the approaches, procedures,
policies and practices by which the firm may scan
the environment and gather relevant information
about stakeholders, which is helpful for decision
making purposes.

26. The Transactional Level
• This Transactional Level is the highest and
most developed of the three levels and is the
highest goal for stakeholder management.
With this level the manager actually engage in
transactions with stakeholders.

27. Five key questions in stakeholder
management

28. • Who are our stakeholders?
• What are our stakeholders’ stakes?
• What opportunities and challenges do our
stakeholders present to the firm?
• What responsibilities does the firm have to its
stakeholders?
• What strategies or actions should the firm
take to best address stakeholder challenges
and opportunities?

29. • Generic categories
• Specific sub-categories
Who are our stakeholder

30. • Generic Categories
• Owners
• Employees
• Governments
• Consumers
• Competitors

31. • Specific Sub-categories(Consumers)
– Business purchasers
– Government purchasers
– Educational institution
– Global markets

32. OPPORTUNITIES AND CHALLENGES
DO OUR STAKEHOLDERS PRESENT
Opportunities means to build a harmonious, productive working
relationship with the stakeholders.
On the other hand , challenges present themselves in such a way
that the firm must handle the stakeholders acceptably or be hurt
in some way- financially or in terms of its public image or
reputation in the community.

33. RESPONSIBILITIES THAT THE FIRM
HAVE TO ITS STAKEHOLDERS
Responsibilities here may be thought
of in terms of the CSR ---
• Economic responsibilities
• Legal responsibilities
• Ethical Responsibilities
• Philanthropic Responsibilities

34. Key Questions In Stakeholder Management
What Strategies or Actions Should Management Take
?
Important Questions that management has before it in dealing with
stakeholders include :
• Do we deal directly or indirectly with stakeholders ?
• Do we take the offense or defense in dealing with stakeholders?
• Do we accumulate, negotiate, manipulate, or resist stakeholder
overtures?
• Do we employee a combination of the above strategies or pursue
a singular course of actions?

35. Stakeholder types and corresponding
strategies are_
1. The supportive stakeholder: High on potential
for cooperation and low on potential for threat
2. The marginal stakeholder: Low on both potential
for threat potential for cooperation
3. The non-supportive stakeholder: High on
potential for threat and low on potential for
cooperation
4. Mixed blessing stakeholder: High on both
potential for cooperation and potential for
threat

36. Diagnostic typology of
organizational stakeholders

37. Principles of stakeholder management
Acknowledge and monitor the stakeholder
Listen to and communicate with stakeholder
Adopt process and modes of stakeholder
Recognize the interdependence
Work cooperatively
Avoid altogether activities
Acknowledge the potential conflicts