MNGT 482 - Quiz #4 Study Guide
MNGT 482 - Quiz #4 Study Guide mngt 482
Popular in Business Ethics/Sustainability
Popular in Department
This 4 page Study Guide was uploaded by Gilmarys Bernal on Sunday October 2, 2016. The Study Guide belongs to mngt 482 at Towson University taught by Manoj Basuray in Fall 2016. Since its upload, it has received 29 views.
Reviews for MNGT 482 - Quiz #4 Study Guide
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 10/02/16
Chapter 2 – Managing Public Issues and Stakeholder Relationships Public Issues is any issue that is of mutual concern to an organization and one or more of its stakeholders. Also called social issues or sociopolitical issues. Characteristics: They are often broad issues, often impacting many companies and groups, and of concern to a significant number of people. They are often contentious – different groups may have different opinions about what should be done about them. They often, but not always, have public policy or legislation implications A public issue often indicates there is a gap between what the firm wants to do or is doing and what stakeholders expect. Performanceexpectations gap a mixture of people’s opinions, attitudes, and belief about what constitutes reasonable business behavior. Failure to understand stakeholder concerns and to respond appropriately will permit the performanceexpectations gap to grow. Emerging public issue are both a risk and an opportunity. They are a risk because issues that firms do not anticipate and plan for effectively can seriously hurt a company. On the other hand, correctly anticipating the emergence of an issue can confer a competitive advantage. Environmental Analysis Organizations need a systematic way of identifying, monitoring, and selecting pubic issues that warrant organizational action. To identify those issues that require attention and action, a firm needs a framework for seeking out and evaluating environmental information. Environmental analysis is a method managers use to gather information about external issues and trends, so they can develop an organizational strategy that minimizes threats and takes advantage of new opportunities. Environmental intelligence is the acquisition of information gained from analyzing the multiple environments affecting organizations. Should focus on eight strategic radar screens. Customer environment includes the demographic factors, such as gender, age, marital status, and other factors of the organization’s customers as well as their social values or preferences. Competitor environment includes information on the number and strength of the organization’s competitors, whether they are potential or actual allies, patterns of aggressive growth versus static maintenance of market share, etc. Economic environment includes information about costs, prices, international trade, and any other features of the economic environment. Technological environment includes the development of new technologies and their application affecting the organization, its customers, and other stakeholder’s groups. Social environment includes cultural patterns, values, beliefs, trends, and conflicts among the people in the societies where the organization conducts business. Political environment includes the structure, processes, and actions of all levels of government – local, state, national, and international. Legal environment includes patents, copyrights, trademarks, and considerations of intellectual property, as well as antitrust considerations and trade protectionism and organizational liability issues. Geophysical environment relates to awareness of the physical surroundings of the organization’s facilities and operations, whether it is the organization’s headquarters or its field offices and distributions centers, and the organization’s dependency and impact on natural resources such as minerals, water, land, or air. Competitor intelligence refers to the systematic and continuous process of gathering, analyzing, and managing external information about the organization’s competitors that can affect the organization’s plans, decisions, and operations. The Issue Management Process 1. Identify issue involves anticipating emerging concerns, sometimes called “horizon issues” because they seem to be just coming up over the horizon like the first morning sun. You can do this by tracking the media, experts’ views, activist opinion, and legislative developments. 2. Analyze issue understanding how the issue is likely to evolve and how it is likely to affect them. 3. Generate options involves generating, evaluating, and selecting among possible options. This requires complex judgements that incorporate ethical considerations, the organization’s reputation and good name, and other nonquantifiable factors. 4. Take action once an option has been chosen, the organization must design and implement a plan of actions. 5. Evaluate Results assess the results and make adjustments as necessary. Managers see issue management as a continuous process, rather than one that comes to a clear conclusion. Organizing for Effective Issue Management A corporation’s issue management activities are usually linked to both the board of directors and to top management levels, because of their increasing importance. The European Academy of Business in Society (EABIS) undertook a study and found that effective global leadership on these public issues required three basic capabilities. 1. Understanding of the changing business context 2. Ability to lead in the face of complexity 3. Connectedness the ability to engage with external stakeholders in dialogue and partnership. Stakeholder Engagement 1. Stages in the Business Stakeholder relationship Scholars have characterized these stages as: Inactive companies simply ignore stakeholder concerns. These firms believe that they can make decisions unilaterally. Reactive companies generally act only when forced to do so, and then in a defensive manner. Proactive companies try to anticipate stakeholder concerns. These firms use the environmental scanning practices to identify emerging public issues. They often have specialized departments to manage stakeholder relationships. These firms are much less likely to be blindsided by crises and negative surprises. Interactive means that companies actively engage with stakeholders in an ongoing relationship of mutual respect, openness, and trust. Firms with this approach recognize that positive stakeholder relationships are a source of value and competitive advantage for the company. Stakeholder engagement is used to refer to this process of ongoing relationship building between business and stakeholders. 2. Drives of Stakeholder Engagement Goals for stakeholder engagement to occur both the business and the stakeholder must have a problem they want solved. The problem must be important and urgent. Its objective could be to improve corporate reputation; earn a license to operate, to win approval of society. Motivation both sides should be motivated to work together to solve the problem. Both sides depend on each other to accomplish their goals. Organizational capacity each side must have the organizational capacity to engage the other in a productive dialogue. This may include support from top leadership and an adequately funded external affairs or comparable department. It may also include an issue management process to provide an opportunity. 3. Making Engagement Work Effectively The process of engagement can take many forms, but it often involves dialogue (“the art of thinking together”) with the stakeholders. In stakeholder dialogue a business and its stakeholders come together for facetoface conversations about issues of common concern. 4. Stakeholder Networks Dialogue between a single firm and its stakeholders is sometimes insufficient to address an issue effectively. Corporations sometimes encounter public issues that they can address effectively only by working collaboratively with other businesses and concerned persons and organizations in stakeholder networks. 5. The Benefits of Engagement Stakeholder organizations bring a number of distinct strengths. They often become aware of shifts in popular sentiments before companies do and thus are able to alert companies to emerging issues.
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'