The stakeholders are persons or group of persons who have interest in an organization. They own share in the business and can affect action, objective and policies of an organization. The creditors, directors, employees, suppliers, owners, and community are some examples of key stakeholders. The community engagement not only benefits communities but improves decision making and competitiveness of the company. This report defines the involvement of stakeholders in the business management. It includes identification and critical evaluation of the functions and importance of various stakeholder groups. The report has critically analyzed the strategies required to predict the behavior of individual stakeholders and developed an effective community engagement plan. The communication strategies have been evaluated in order to maximize the purpose of internal and external stakeholders. The report further examines the appropriate social network platforms which can be used to influence a successful project implementation. Finally, the stakeholder management theories are evaluated to predict the behavior of stakeholders.
The stakeholders have involvement in the project and have a vested interest in the success or failure of an organization. They provide help on the issues from the beginning, planning and at the execution of the project (Archambeault, DeZoort & Holt, 2008). So, the stakeholders are accountable to understand the project functions. There are five major types of stakeholders such as customers, employees, investors, suppliers, communities, and governments
The stakeholders are classified as internal and external. The internal stakeholders bear direct impact of the project such as employees. They are directly involved in the financial and operational process. The external stakeholders are not a part of the business but have interest in the outcome like suppliers. They are indirectly affected by the operations of an organization.
The stakeholders are usually investors of a company whose actions determine the outcome of business decisions. Every business has a different approach to the stakeholders. The role of stakeholders differs among businesses. It depends on the rules and responsibilities laid down by the company (Beringer, Jonas & Georg Gemünden, 2012).
Community: A successful relationship between a business and stakeholders are developed by working together towards a common goal. The employees rely on the business for their livelihood. If the employees are treated well in the organization then work in the best interest of the company and beyond the requirements of the job. If the comfort or products and services provided by company improve the quality of customer’s life then they will take any step required for the benefit of the company (Beringer, Jonas & Kock, 2013). The investors are associated with the interest of the company as they have a financial stake in the company so they certainly want a financial return. If the investors seriously want a business to do well then the relationship goes beyond the desire to make profits.
Financial benefits: A business earns more profits which maintain a relationship with the community of stakeholders. The employees who are concerned about work and gives it more preference than it acts as ambassadors for the brand of a company. The customers who believe in the company than the offerings support an investor in it’s long-term. The stakeholders help a company in it’s working capital and funds for the growth and expansion projects. The vendors who are just a part of sales do not go the extra mile and do not even extend terms if the company is suffering financially.
Decision making: The most common stakeholders of a company are it’s board of directors. This authority comprises higher-ranking executives and outsiders. They hold a large amount of equity in an organization. Due to high authority, the stakeholders have the power to take all the important decisions of the company and introduce innovative ideas to the company. The directors have authority to recruit all levels of senior management including CEO. The directors can even remove any member if it is required so. The board of directors takes all the important business decisions for all the major business decisions (Bowen, Newenham-Kahindi & Herremans, 2010).
Successful stakeholder relationships: It is essential for the success of the company to maintain a successful relationship with stakeholders. It takes efforts and visions to build strong connections. A business should work on supporting the interest of business whenever possible with the stakeholders. The employees should be treated well and paid fairly so that they work towards the mutual success of the company (Brem & Viardot, 2015). The highest quality produced by company helps to takes customers extra miles along with it. The relationships with the investors should be refined in order to get long-term viability than the short-term dividends.
The stakeholders invest in the companies which are newly formed or want to expand the business. The functions of stakeholders influence the business. The stakeholder can take away the investment whenever he desires so. The functions of stakeholders are:
Project monitor: It is the main function of stakeholders to monitor the progress of business projects in order to ensure that the investments made by them are not wasted. For instance, an organization can obtain the resources of stakeholders to settle another location in another part of the region. In such a scenario, it is the function of stakeholders to check the status of location and contribute to the progress of the business. The managers are required to complete the projects on time (Brunton Eweje & Taskin, 2017)
Experience source: The stakeholders’ functions as a source of knowledge and expertise. The businesses look to it’s stakeholders as mentors to guide on the important matters. The wealth and knowledge of stakeholders drive the success of the business. For instance, a business can seek for the strategies to the stakeholders for expanding the business into a new market pace (Corley, Cochran & Comstock, 2001). The stakeholders provide suggestions regarding expansions and the pitfalls a company can face.
Resource provider: It is one of the primary functions of a stakeholder is to provide resources to an organization whenever it requires. The stakeholders do not provide money and capital but also commits certain monetary assurances to the business whenever it requires. For instance, the company plans to expand business definitely requires potential monetary commitment from the stakeholders. The stakeholders provide funds for the different phases whenever it requires.
Conflict resolution: The stakeholders step in whenever the conflict resolution arises in the business and resolve the issues. For instance, if any director is accused of a crime and the managers cannot reach to a commitment that the company seeks for the voting power of stakeholders. It helps the company to take a final decision (Curtis, et.al. 2014). The stakeholder’s function acts as mediators in the business conflicts and judges the matter.
The strategies needed to predict individual stakeholder’s behavior
Stakeholder mapping: The stakeholder analysis is conducted in order to know and identify stakeholders. The key factors are identified and examined comprising contiguity of project, demographics, concern in the project, needs, expectations of projects and any previous statements made by the public (D’Angelo, Pullmann & Lyon, 2017). It is also important to gain an understanding of internal stakeholders such as immediate staff, dealers, and contractors. The mapping of internal stakeholders helps a company to investigate whether it has the right resources and how the team is going to function effectively.
Influence as a key: Understanding a level of influence allows a company to predict how stakeholders can interact directly with the team and others. The range of potential influence is broad. It can be imagined from positive sentiment, support through involvement and engagement of other community members against the project. The possible influence of stakeholders can be measured by identifying the level on a scale ranging from high, medium to low (Dare, Schirmer & Vanclay, 2014). The high influence indicates that a stakeholder has substantial power to impact decisions, timeframes, and results. The medium influence indicates that a stakeholder has a significant interest in the project with less power to impact changes in the project. The possibility of low influence indicates a stakeholder with less ability to change outcomes of a project.
Identifying causes: The stakeholders behave in different ways towards different project actions. The preventable complaints can be avoided by identifying causes and the alleviation measures. The behavior of stakeholders can cause a reaction when they experience changes in the environment. The expectations of a business can also cause a reaction in the behavior of stakeholders. Associate stakeholder list with potential known causes such as loud and dirty construction works and interruptions in the normal patterns. The estimation of reactions is estimated which can have in the project and the targeted communication is identified and the required alternative solution (De Chernatony & Harris, 2000).
Look for opportunities: From the perception of risk management, it is appealing to focus on those stakeholders who are more likely to cause disruption in the projects. It is also important to focus on the stakeholders who view project favorably or can be benefited from it. The stakeholders have identified as well as opportunities to influence the positive perception as project promoters.
Proactive mitigation: After understanding of stakeholders, their behavior and causes, the next step is to develop a modification plan. It provides details of risk which can be accepted, shared or avoid and outlined that how impact can be reduced. The plan identifies the reachable and non-reachable measures (Dyer, et. al. 2014). It can include minor changes to the arrangement and noise alleviation measures. It also improves the integrity and ownership of modification measure.
Development of an effective community engagement plan
The community engagement is a process of building relationships with stakeholders, public and interest groups to work side-by-side as long-term partners. Such engagement accomplishes a goal along with protecting the environment and making the community a better place to live. It includes active participation of government from sharing information to consulting community (Fanelli & Misangyi, 2006). The community engagements can be either formal or informal. The community engagement plan is a two-way process in which specific groups of the community are provided an opportunity to deliver output that enhances the decision-making issues. It impacts on the well-being and interest of the community. It is a platform to consider and acknowledge views of the community.
(Source: Community Planning Toolkit, 2018)
The community engagement plan such as meetings can be managed by an effective planning. It includes preparation, leadership, group participation, communication, time management and a clear understanding of what meeting is required to accomplish. An agenda for a meeting is prepared which defines it’s purpose and the matters for discussion. It also identifies the members who are anticipated to attend and contribute (Forsythe, et. al. 2016). The time is established to address matters. The required material is circulated to study if it is required such as floor plans, reports, charts etc. The meeting is started on time and the expectations are reviewed that it likes to accomplish within the time allocated. The role is clarified in the group such as team leader, trainer, and authority. The rules are established to forward the agenda of the company forward. It also includes the important issues such as timely presentations, courtesy towards participants, voting on recommendations and company policies concerning confidentiality. The meetings encourage two-way communications to arrive at a solution. Everyone should be provided an opportunity to express it’s opinions. At the time of the closing meeting, recommendations and decisions are made. It comprises the development of strategies, implementation of policies, the qualitative and quantitative measures to measure effectiveness (Haynes, et. al. 2016).
The communication strategies engage employees and stakeholders which is helpful to organizations to respond quickly towards change. The appropriate communication strategies include various official communication channels like internal memos, newsletters, social media platforms, casual and ad-hoc communication. As per Crenshaw, the focus is given on incorporating employees and partners in an inclusive way which supports the internal and external communications (Crenshaw Communications, 2018).
To ensure an effective internal communication a broad range of channels is used to communicate with the members. The communication strategies make use of channels to maximize the purpose of internal stakeholders. The methods used to encourage communication with internal stakeholders are:
Staff induction: The staff induction makes sure that staff members are provided with the required information on the various communication channels and the aims of strategy. It has been observed that induction training helps new members to fit smoothly into the organization by socializing to the organization culture (Herremans, Nazari & Mahmoudian, 2016). The staff induction programmes are successful in increasing job satisfaction and retention of new employees.
Team meetings: The meetings are held for a purpose. The team meetings provide an opportunity to share and apprise key issues and developments. It ensures the cascade of information from the council to executives, business team, and other relevant groups (Hungerford & Kench, 2015). The meetings make the process complete and evaluate the performance of the group. A leader evaluates the results achieved in a meeting. The follow-up actions are taken and the planning is made for the future.
E-mail/ Intranet: The e-mails are used to send key messages to the staff in order to obtain information on the organization. The information regarding relevant documents is also sent via IT server. It I made sure that the staff is aware of and adhered to the email policies and etiquette procedures. The use of intranet can be evaluated from the wide messages, an online bulletin for discussions, storing policies and online training programmes (Joosten, et. al. 2015).
Internet: The sources of the internet for the stakeholders are the main website and other mini websites are appreciated communication tools. This communication tool is frequently monitored and developed to ensure that the content available is accurate and up to date with the plans and strategies of the company (King, Kolopack, Merritt & Lavery, 2014). It manages multiple conversations at once. It also reduces the long-distance calling fees.
Notice boards: The notice boards are used to display a notice, media releases, newsletters and information regarding issues. It also exhibits the relevant health and social care events. The notice board establishes consistent and quality messages based on the standards and guidelines.
Circular: The electronic newsletters are another way of keeping staff informed of organizational issues. It also publishes the resources required from key stakeholders. The work is conducted from research to writing content. It measures the effectiveness to achieve objectives of an organization (Krantzberg, et. al. 2015).
The external communication defines how a company works with it’s key stakeholders in order to develop good working relationships. It aims to develop a high-quality service. There are two ways of communication with external stakeholders as they are provided important information by the company and on the other way, the company seeks heir decision on the important matters.
Corporate publications: The corporate publications ensure to provide accurate and accessible information to the stakeholders. It includes annual report and accounts, business plans and corporate strategy. The information is provided in the in a cost-effective way and in easy language. It is evaluated that the information assists in following a consistent style (Laverack & Manoncourt, 2016). It includes the best practices and is used to intimate external stakeholders.
Media communication: It includes press releases and notifications for the public meetings. The information related to stakeholders is published through media. It also shares the appropriate and relevant news with the external stakeholders. The media communication also informs stakeholders about the financial and human resources of the company.
Bulletin board: The bulletin board can be found on the main website. It promotes the transfer of information, concepts, and updates within the working group specially set up for the work streams. It makes easy for the working group members to communicate and remark on the issues within the secured way. The important information is put on the bulletin boards as it highlights all the important matters (Layden, et. al. 2014).
Professional networks and events: These are the important ways to communicate with colleagues and organizations. The stakeholders can communicate on a range of issues related to daily practice, policies and the growth of the company. The company works with stakeholders make sure that there is a harmonized approach to communicate key messages to the investors, media and the public. The growth of the company is also reviewed in such events.
Council meetings: The companies actively publicise when the meetings are going to take place. These meetings are open to the public and encourage the public to attend (Lim, 2017). The company also ensures that all the relevant papers are made available to attend council meetings and the minutes available on the website. It has been noticed that council meetings bring out the positive opportunities for the company.
There are various relevant social network platforms that could be engaged in the successful implementation of projects. These platforms are Twitter, LinkedIn, Google +, YouTube and WhatsApp. These are the major resource for the company to promote itself on the internet. It helps to attract investors. The important task is to engage stakeholders for the successful implementation of projects (MacQueen, et. al. 2015). The stakeholders can be engaged by using the most popular social media for the corporation. These platforms are easy to use. The social networks are:
Twitter: Twitter has over 320 million active monthly users. It makes use of 140 characters to spread information. The corporation makes use of Twitter to interact with potential investors. They provide a reply to the queries within the working hours. It also releases the latest news and the important engagements.
LinkedIn: It is the most popular site for the professional network. This website is made available in 24 languages and has more than 400 million register users. It is great for the companies as it looks to connect with potential investors and the people of the same industry. There is strong networking of local professionals. The companies display the business related information and statistics on the LinkedIn (Milliken, Schipani, Bishara & Prado, 2015).
Google+: It is the most popular social media site. It is a most useful tool for the corporations. It has joined various famous leagues and registered 418 million users. It makes available the world-class information for the stakeholders. The information available on Google+ is universally accessible. It has connected stakeholders and includes funding, tools, and volunteers around Google. It brings the best power towards work and accelerates the progress (O’Mara-Eves, et. al. 2015).
YouTube: It is the largest and popular video-based social media platform. It is the second popular search engine after Google. It has more than 1 billion website visitors per month. It provides all the relevant information for the successful implementation of the project. The stakeholders can also add video to the relevant information and decision-making process.
WhatsApp: The WhatsApp messenger is a platform which enables instant messages to inform clients. WhatsApp is the most trending social media platform used by the companies to inform a group of stakeholders. The companies create groups for both internal and external stakeholders and information about all the important events and meeting taking place (Musesengwa & Chimbari, 2017). There are over 1 billion people who use the service for the purpose of informal and formal communication.
The stakeholder management theory is a part of organizational management. It is a conceptual framework of ethics and organizational management. The stakeholder management theories reflect that the purpose of business is to create value for stakeholders, suppliers, employees, and communities in order to be successful. The group of stakeholders supports the organization (O’Shannassy, 2003). The group includes customers, employees, suppliers, local communities, political groups and more. The stakeholder techniques are useful in identifying important customers. It has also a role in the stakeholder engagement which effectively engages stakeholders with the company. The stakeholder management theory considers two crucial frameworks such as integration of strategy and ethics and development of a dynamic approach (Lin, Li & Bu, 2015). It links together stakeholder management and commitment to cooperate with the firm. These theories result in the expansion of effective long-term and short-term strategies. It has a role in both before and after profit decisions.
The stakeholder theory considers the relationship between the company and it’s internal and external environments. It affects how a business conducts it’s activities. The companies need to consider more on stakeholders to maximize profits. It also improves the stakeholder value. If the company do the right thing for the people and investors then it is always right for the company financially. The company is not only managed in the interest of shareholders but there is a whole range of stakeholders. The theory identifies the groups of stakeholders to define and recommend various methods to satisfy them. The organizations which apply ethics recognize the responsibilities towards all both internal and external stakeholders. The theory focuses on the proper use of capital and managing the business effectively. It enables an organization with accurate and timely information. This theory ensures growth and provides a fair return on the capital (Tilt, 2010). The core idea behind this theory is to manage stakeholder relationships effectively to survive longer and perform better. It makes a commitment to monitor interest of stakeholders. It divides and categorizes interest in order stakeholders of different segments. It concentrates on performing all the important functions in order to ensure that organization addresses needs of stakeholders properly. The influence of stakeholders helps to shape a project and the project is positioned much better and successful. It also yields good public relations and pays for the success in the long term (Sones, Grantham & Vieira, 2009).
Conclusion
The stakeholder engagement is the process in which an organization involves people who are affected by it’s decisions. It influences their decision. The stakeholders can be identified as individuals and groups who have interest in the project carried on by the corporation. The responsibility of stakeholder engagement is part of CSR for the company. The stakeholders engage with the company on the basis of the principles comprising communication, consult often, good relationships, managing risk and more. The stakeholders influence the outcome of a company through negotiation, consultation, and communication. The engagement of stockholders and community gains approval and support of stakeholders and minimizes the opposition towards the company. The engagement anticipates human risks and arises opportunities. This report identifies and evaluates the function and importance through the stakeholder groups. The strategies are analyzed in order to predict the behavior of stakeholders. An effective community engagement plan has also been developed. The communication strategies have been evaluated in order to maximize the purpose of internal and external stakeholders. Further, the relevant social network platforms have been examined to provide leverage for the successful implementation of projects. Finally, the stakeholder engagement theories have been evaluated and how it is helpful in predicting the behavior of stakeholders.
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