Managing Public IssuesManaging Public Issuesand Stakeholder Relationshipand Stakeholder Relationship

Public Issues: is any issue that is of mutual concern to an organization and one or more of it stakeholders. (different groups have different opinions.)

Examples: General Motors

Wal- Mart Stores

Ikea

Performance – Expectation Gap

Front line employeesHave you ever received a complaint about failing to deliver a

promised service?Your consumers have definite performance expectations of those you lead. If your employees are not meeting those expectations, there is a performance gap between what your consumers are expecting and what they are experiencing.

That gap may be costing you future and current customers as well as diminishing the integrity of your brand! The solution to closing and minimizing the damage caused by these gaps is found in raising the leadership capacity of your

people.

Teams

Have you ever sat through a meeting that seemed to go absolutely nowhere? Have you ever sat through a meeting at which you thought you understood what was happening only to realize later that the communication was so poor that you had no idea what you were doing?Organizational leaders assign teams for the purpose of completing specific tasks. Often, team members are the best of the best! However, even the best team members may lack the skills necessary to function in a challenging team setting. Further, team members may head in multiple directions, failing to meet timelines and benchmarks. When team members are no longer hitting these baseline expectations, inefficiencies begin to occur. As a result, gaps between team expectations and actual outcomes form. For most leaders, closing these gaps is a formidable task. The net result is lost time and resources. The solution to closing and minimizing the damage caused by these gaps is found in raising the leadership capacity of your people.

Vision and Mission Have you ever received incredibly poor service or paid for a terrible

experience? While you were receiving that service or having that experience did you notice the company's vision or mission statement posted on the wall? Did it read something like this: "Your satisfaction is 100% guaranteed?" How was that company really doing in executing its vision and mission? Could they see the gaps between what they had posted on their walls and what was actually happening?No, probably not! Can you?The purpose of creating a vision is to develop an idealized goal or outcome. Mission is the day-to-day action required to create the energy to move toward the vision. Too often organizations confuse vision and mission. Further, they do not focus on the behaviors and mindset necessary to obtain their vision through mission. Unfortunately for most organizations, vision and mission are just statements on the wall that are not understood, never internalized and rarely acted upon by those claiming to subscribe to them. As a result, gaps are formed between what they claim and what they do. The solution to closing and minimizing the damage caused by these gaps is found in raising the leadership capacity of their people.

Accountability

Has someone ever promised you something and failed to deliver? Has anyone ever left you hanging? Have you ever heard "It's not my fault" or "I can't control that" or "It's not my job"? Failure to create a culture of accountability within an organization leads to low performance and excuses. When accountability is absent people do not deliver; in fact, they leave each other hanging and do not own their behavior for their individual job performances. They often become the victim of other individuals' mindsets of -"It is not my fault!" - because it is much easier to place blame than to solve problems! This results in serious gaps between both internal and external consumers of your organization! Zero accountability is the new American way of thinking. Too often organizations cannot move forward, improve or grow because no one takes ownership and responsibility for what they are doing, much less how they are behaving! As a result the organization suffers, deadlines come and go, customers are unhappy and employees are wasting time. Ultimately, your consumers hold you accountable and the organization suffers. The solution to closing and minimizing the damage caused by these gaps is found in raising the leadership capacity of your people.

Public Issues:

Climate Change

Executive Pay And Bonuses

Food Safety

Privacy

Environmental Analysis:

Method managers use to gather information about external issues and trends.

Environmental Intelligence:

The acquisition of information gained from analyzing the multiple environments affecting an organization.

Competitive Intelligence:

The systematic and continuous process of gathering, analyzing, and managing external information about the organization’s competitors that can affect the organization’s plans, decisions, and operations.

SWOT ANALYSIS

Issue Management:

To actively manage the issue as they arise.

Issue Management Process:

• Identify Issue• Analyze Issue• Generate Options• Take Action• Evaluate Results

Stakeholder RelationshipStakeholder Relationship

• Inactive

• Reactive

• Proactive

• Interactive

Stakeholder Engagement:The process of ongoing relationship building between a business and its stakeholders.

Drivers of Stakeholder EngagementDrivers of Stakeholder Engagement

• Goals

• Motivation

• Organizational Capacity

• Stakeholder Dialogue

• Stakeholder Networks

The Corporation’s Social Responsibilities

Corporate Power:

Refers to the capability of corporations to influence government, the economy, and society, based on their organizational resources.

Iron Law of Responsibility:

States that in the long run those who do not use power in ways that society considers responsible will tend to lose it.

Corporate Social Responsibility: Means that a corporation should act in a way that enhances and its inhabitants and be

held accountable for any of its actions that affect people, their communities, and their environment.

Corporate Social Responsibility Debate

Arguments For:

• Balances Corporate Power with Responsibility• Discourages Government Regulation• Promotes Long-Term Profits for Business• Improves Stakeholder Relationships• Enhances Business Reputation

Arguments Against:

• Lowers Economic Efficiency and Profits• Imposes Unequal Costs among Competitors• Imposes Hidden Costs Passed On to Stakeholders• Requires Skills Business May Lack• Places Responsibility on Business Rather than Individuals

Social Enterprise:Refers to an organization that uses business strategies for the purpose of improving

human and environmental well being.

Social Entrepreneurship:

When a person or group of people identify a social need and use their entrepreneurial skills to address this need. Is to use the power of enterprise to drive social change and help society.

B Corporation: benefit corporation. It blends it social objectives with financial goals.

Bottom of the pyramid: Refers to the poorest people in the world.

Microfinance: Financial organizations provide loans to low-income clients or solidarity lending groups who traditionally lack access to banking or related services.