The stakeholder theory provides definitional parameters that help us determine who the stakeholders are and to identify the importance of the needs and interests that each group or individual has. The theory mainly focuses on the managerial and strategic aspect of the business, by explicitly recognising the organisation’s moral dimensions, in the context of reflecting on how managers should operate to articulate and build the best possible relationship with their stakeholders and to effectively deliver on their purpose.
Taking into consideration the shared and explicit values between the stakeholders and the core organisation, the theory seeks to identify the stakeholders, classify them using specific attributes and examine the conditions under which managers should satisfy their needs and interests. The stakeholder theory is based on the principle that values have a vital role within the organisation and the main objective is to create benefits to satisfy the organisation’s stakeholders, specify the appropriate kind of relationship between the business and the stakeholders and determine the way managers should operate to satisfy their needs. This process is more about cultural change and requires a great understanding of the attractiveness of the industry to identify all the stakeholders and the individual value they possess. Sharing the same values and aligning interests with stakeholders is like putting together a partnership where in the end every party wins.
The challenge is to understand and discover ways to manage and satisfy their needs while balancing the impact on every stakeholder. Stakeholder management is linked with the organisation’s improvement in terms of decision-making, accountability, risk management and reputation strength. Under this scope, organisations are indicated to develop constant and solid relationships.
George Yiapanas on Stakeholder management
Since receiving his PhD with an emphasis on stakeholder management and the value-based approach, he continued studying on the importance of identifying the stakeholders (for every industry), that enable organisations to create and maintain sustainability. Relationships and how they shift depending on the industry context is one of the main elements and at the same time, a great concern, as most organisations share the responsibility to manage diverse stakeholder groups, unavoidably causing internal contradictions since stakeholders are treated according to individual social norms that may not clearly represent the organisation's values.
Contact George to book a speaking engagement or schedule an interview about Stakeholder management