Please enable JavaScript.

Coggle requires JavaScript to display documents.

Unit 2 b (OBJ 1: Critically discuss stakeholder engagement and…

- - - - 1) Strict commercial logic
        
        Economic focus -> profit, growth & efficiency
        
        Stakeholder collaboration at expense of economic returns
        
        Creates financial value
        
        2) Collaboration for competitive gain
        
        Orgs collaborate to create value to gain
        
        Competitive advantage, reputation & capacity for innovation
        
        It recognizes interconnections with stakeholders & includes relationships - not just single transaction
        
        Creates some social value to create financial value
        
        3) Focus on social value creation
        
        Creating value for org & society
        
        Complex - think through bidirectional & positive links between social & economic value
        
        Recognize interdependence between wellbeing of both org & society
        
        Create social and financial value
        
        Stakeholder inclusive approach
      - Dominant logic
        It is a NB driver -> it directs attention to particular stakeholders & how orgs choose to engage (or not) with them
        These decisions, actions, comm can lead to self-fulfilling prophecy -> it reinforces the logic, managers are further convinced of their business model
        No guarantee that their logic will lead to competitive gain.
        :checkered_flag: Collaborating (the art dominant logic - stakeholder approach) takes time & money, maybe less production for value creation.
        
        NB to achieve competitive advantage - benefits of engaging with stakeholders must exceed costs (thus includes time & direct allocation of sources).
        Org must continue creating financial value whilst creating social value.
        
        :checkered_flag: Managers must conceptualize a sufficiently detailed logic on how to engage with stakeholders & ensure appropriate time, resources & dedication goes in managing relationships - a complex balance.
        
        The KEY to dominant logic -> Stakeholder approach
        When orgs develop trusting relationships with SH
        ->
        SH more likely to share nuanced info (info sharing)(engagement)
        ->
        This can spur innovation & orgs can better deal with changes in environment
        ->
        Stakeholders more likely to reciprocate & continue to transact with org (reciprocation)
        ->
        They can even become advocates for org (advocacy)
        ->
        This info sharing, reciprocity & advocacy lead to direct sustainable competitive gains
      - Stakeholder inclusive approach
        Shareholder approach claims that the purpose of the firm is to maximize the welfare of stockholders.
        Stakeholder approach emphasizes active management of business environment & relationships, as well as promotion of shared interests. Interests of key stakeholders must be integrated into the purpose of the org.
        
        Enlightened stakeholder approach: stakeholders are only considered in as far as it is in the interests of shareholders to do so.
        
        Stakeholder inclusive approach: Considers interests & expectations of stakeholders on basis that it is in interests of the org.
  - - - 10 requirements: