Business and stakeholder relationship

What Are Stakeholder Relationships? |

business and stakeholder relationship

other activities to their business strategies tend to be more successful financially Alignment of risk management practices and stakeholder relationship. Ken Rushton. Page 1 of 7. Stakeholder Relationships. Ken Rushton. Director, Institute of Business Ethics. It is a pleasure to be invited back to. Read Articles about Business & Stakeholder Relations- HBS Working Knowledge : The latest business management research and ideas from HBS faculty.

Along with acting legally and responsibly, small communities like to support companies that give back through charity and participate in local community activities and events. Employees The relationship your business has with its employees impacts the company culture and, in turn, the way your employees interact with your customers. Recognition of the importance of the employee relationship has evolved significantly in the early 21st century.

Companies are doing more to show value for employees as people, including promoting fair hiring and employment practices, and allowing employees paid time to volunteer. Additionally, companies are incorporating employee feedback more often into business decision processes.

business and stakeholder relationship

Owners and Partners In some smaller businesses, owners actually play a hands-on role in operation. In other cases, such as with corporate structures, owners or shareholders provide financial support as an investment.

Thus, due diligence to find out what key stakeholders do not want is as vital as discovering what they want.

Stakeholder Relationships, Social Responsibility and Corporate Governance

Knowing what people truly do or do not want begins with questions. But as we have noted, it is often difficult for stakeholders to clearly articulate what they do and do not want.

Adapting communication styles In our transition labs we find many CxOs get into relationship difficulties because they have a communication style that works counter to the style of their key stakeholders. There are many different typologies for personality, such as the Myers-Brigg Type classification or TetraMap. Many of the typologies derive from the work by psychologist Carl Jung and provide similar guidance on how to adapt communications to different styles.

At Deloitte, we have co-developed a typology of business personalities rooted in the work of Dr. Helen Fisher, a well-known author and research professor in the Department of Anthropology at Rutgers University, which we abbreviate in table 1.

Awareness of personality types can help CxOs modify how they communicate to be better heard and understood by their stakeholders. In my transition labs with CFOs, they usually hunch themselves primarily into the driver or guardian categories, their CEOs primarily into the driver and pioneer categories, the CHRO into the integrator category, and the audit chair into the guardian category.

Another communications issue I encounter with very bright functional executives is how fast they speak or solve problems in meetings. For example, many CFOs I work with are very smart, but can lose their peer audience if they arrive at conclusions and communicate them while others are still getting a handle on the problem.

Speaking fast also makes it difficult for the audience to hear and process what you are trying to communicate. This is especially the case with multinational leadership teams where English is a second language for some. Thus, modulating communication style to the needs of the audience can set a more positive context for relationships going forward.

Connecting where critical conversations occur and making time As an incoming executive it is also important to attend social and other events that bind key people in the organization together and to go where the informal conversations occur.

business and stakeholder relationship

Sometimes this may be at the bar over drinks as a group after work. It could be other social events that occur outside of normal work hours.

Being absent from these meetings is noticeable, especially in the early phases of joining a new company, and is sometimes a negative observation from stakeholders in our pre-lab interviews. For some incoming executives the social setting may be awkward or compete with other family priorities.

business and stakeholder relationship

For example, imagine you are a teetotaler and much of the work socializing occurs after hours at the pub next to your office. You may naturally be inclined to skip the pub, but attending to converse while skipping the drink will likely help you read the issues in the organization better, connect more personally with stakeholders, and help establish an ongoing relationship of value later.

Stakeholder relations management is a key skill

So identify and engage stakeholders where they converse. Most stakeholders also want to be helpful to an incoming executive. One observation we have from our transition labs is that some incoming executives do not take advantage of this, especially if the stakeholder is a highly accomplished board member or is perceived to be a very busy executive.

Scheduling time to update them at a regular cadence or finding time to meet with them if you are traveling to their city on another matter helps bind the social ties to be more effective. First steps Identify your stakeholders List the people, groups or organizations who are affected by your project, who have influence or power over it, or have an interest in its successful or unsuccessful conclusion.

Why Are Stakeholder Relationships Important to Your Business? - Proof Strategies

Stakeholders can be assessed systematically according to criteria such as influence, impact and alignment. For example, these questions can help assess their relevance: To what extent will your strategy affect each group, positively or negatively? How robust is the existing relationship with them?

business and stakeholder relationship

What information do they need from you? How do they want to receive it? Who influences their opinions about this issue, and who influences their opinions of you? Are some of these secondary sources therefore potential stakeholders as well? What is their potential to influence the business directly or indirectly via other stakeholderspositively or negatively? If they are not likely to be positive, what will get their support?

business and stakeholder relationship

How likely will actions towards one stakeholder group influence the attitudes of other stakeholder groups? What are the consequences of this?

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