Effective management of relationships with stakeholders is extremely important to resolving issues facing organisations. By making use of their influence, stakeholders hold the key to the environment in which your organisation operates in addition to the subsequent financial and operating performance of the organisation. Thus the effective management of stakeholder relations is growing as a key focus of PR and organisational activity.
Who Is A Stakeholder?
A stakeholder is any person, group or organisation who is able to place a claim on an organisation’s attention, resources or output, or is affected by that output. They have a stake in the organisation, in other words something at risk, and therefore something to gain or lose as a consequence of corporate activity.
The goal of stakeholder relations management is to sway stakeholder attitudes, decisions as well as actions for mutual benefit. The stakeholders need to benefit from the relationship with the organisation otherwise they may not be sufficiently motivated to cooperate.
Existing both internally and externally, stakeholders can have competing priorities and needs. In an ideal world, organisations could ignore this clamouring-for-attention and go about the important business of making money – no doubt the reason for their being. No such luck! Stakeholder relationships that are unmanaged or mismanaged have many less than favourable consequences for companies. These include needless expenses as well as a lack of buy-in to processes and initiatives that are aimed at transforming the company.