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Who is a Stakeholder?
Source Stake
Stanford memo, 1963 “those groups without whose support the organization would cease to exist”
Rhenman, 1964 “are depending on the firm in order to achieve their personal goals and on
whom the firm is depending for its existence”
Freeman and Reed, 1983 “can affect the achievement of the organization’s objectives or who is affected
by the achievement of an organization’s objectives”
Rationales for Stakeholder Identification
A relationship exists
The firm and stakeholders are in relationship
Power Dependence: Stakeholder dominant
The firm is dependent on the stakeholder
The stakeholder has power over the firm
Power Dependence: Firm Dominant
The stakeholder is dependent on the firm
The firm has power over the stakeholder
Mutual Power-Dependence Relationship
The firm and stakeholder are mutually dependent
Basis for Legitimacy of Relationship
The firm and stakeholder are in contractual relationship
The stakeholder has a claim on the firm
The stakeholder has something at risk
The stakeholder has a moral claim on the firm
Stakeholder Interests-Legitimacy not implied
The stakeholder has an interest in the firm
Stakeholder classes
POWER
A relationship among actors, in
which actor A can get actor B
to do something that B would
not have done otherwise
Power Legitimacy
LEGITIMACY
A generalized perception that
the actions of an entity are
desirable, proper within some
socially constructed system of
norms, values, beliefs and
definition
URGENCY
The degree to which
Urgency stakeholder claims call for
immediate action
Stakeholder Typology
Power Legitimacy
LATENT STAKEHOLDER
1. Dormant Stakeholder- Power
2. Discretionary Stakeholder-Legitimacy 1. Dormant
Stakeholder
3. Demanding Stakeholder-Urgency
4. Dominant
Stakeholder
3. Demanding 8. Non
Stakeholder Stakeholder
Urgency
Stakeholder Power Analysis
Stakeholder Power Analysis
Stakeholders are the people who matter to a system
Stakeholder power analysis is a tool which helps understanding of how people
affect policies and institutions and how polices and institutions affect people
KEY QUESTIONS
Who they are
What they think
What influence they have
How to engage them
How to inform
How to stay in touch
If things change
Stakeholder Power analysis
6 Steps
Develop purpose and procedures of analysis and initial understanding of
the system
Identify key stakeholders
Investigate stakeholders interests, characteristics and circumstances
Identify patterns and contexts of interaction between stakeholders
Assess stakeholders power and potential roles
Assess options and use the findings to make progress
Step 1. Develop purpose and procedures of analysis and
initial understanding of the system
Stakeholders have very different degrees of power to control decisions that have
effects on policies and institutions, and they have different degrees of ‘potential’ to
contribute, or ‘importance’, to achieving a particular objective
Power to influence policies or institutions stems from the control of decisions with
positive or negative effects
Stakeholder power can be understood as the extent to which stakeholders are able
to persuade or coerce others into making decisions, and following certain courses
of action
Potential to affect, or to be affected by, policies and institutions resides in particular
characteristics specific to context and location – such as knowledge and rights
Step 5: Assess stakeholder power and
potential
Four General Strategies for stakeholder relations management
Engagement
Step 6 Assess options and use the findings to
make progress
To be useful, the analysis of the first five steps needs to be summarised in a form where
everyone’s interests and issues can be seen together.
Stakeholder relationships with the main problem and each other
Stake holder How affected by the Capacity/motivation Relationship with
problem to participate in other stakeholders
addressing the (e.g. partnership or
problem conflict_