1) The document discusses different perspectives on stakeholders from Milton Friedman, Albert Dunlap, and Philip Kotler from 1963 to 1992, showing evolving views on stakeholders over time. 2) It then defines stakeholders as individuals or groups with a stake or interest in a company or project, who can impact or be impacted. 3) Effective stakeholder engagement is important for business outcomes like performance, reputation and legitimacy. It requires understanding stakeholders, their issues, and building long-term relationships.

1. Redefining Marketing Strategy:
Stakeholder Collaboration

2. Different Perspectives on Stakeholders
“There is one and only one social responsibility of
business, to use its resources and engage in
activities designed to increase business.”
Milton Friedman 1963
“The most ridiculous term heard in the boardroom
today is ‘stakeholders’. Stakeholders! Every time I
hear the word, I ask,‘How much did they pay for
their stake?’”
Albert J. Dunlap (Chainsaw Al) 1997
Mean Business: How I Save Bad Companies and Make Good
Companies Great

3. Different Perspectives on Stakeholders
“If . . . companies are to compete
successfully in domestic and global
markets, they must engineer stronger
bonds with their stakeholders, including
customers, distributors, suppliers,
employees, unions, governments, and
other critical players in the environment.
Common practices such as whipsawing
suppliers for better prices, dictating terms
to distributors, and treating employees as
a cost rather than an asset, must end.
Companies must move from a short-term
transaction orientated goal to a long-term
relationship building goal.”
(Philip Kotler, 1992)

4. Origins of the Stakeholder Concept
What is a Stakeholder?
An individual or group who possesses a
stake

5. Origins of the Stakeholder Concept
An interest or a share in an
Stake undertaking and can be
categorized as:
an interest a right ownership
legal right
moral right

6. Stakeholders
Individuals and groups who have a multitude of
interests, expectations, demands, rights or
ownership, can contribute in the form of knowledge
or support, or can impact, or be impacted by a
project, its work, or outcomes.

7. Implications for driving business outcomes
Aligning your agenda to your stakeholders’ agenda
mutuality
commitment
satisfaction
trust

8. Why stakeholder relations matter. . .
the business imperatives are numerous
and strong:
King III governance requirements
Enhanced organisational performance
through more effective stakeholder
engagement
The competitive advantage associated
with political legitimacy
The need for a strong corporate
reputation with key strategic
stakeholders
Relationship age economics

9. Stakeholder engagement can: 9
Facilitate equitable and sustainable
social development
Enable better management of risk and
reputation.
Allow for the pooling of resources
(knowledge, people, money and
technology)
(Balmer & Greyser, 2006)

10. Stakeholder engagement can: 10
enable understanding of the complex business
environment
enable corporations to learn from
stakeholders
inform, educate, and influence stakeholders
and the business environment
build trust between a company and its
stakeholders.
(Jahansoonzi, 2006)

11. The Accountability Commitment 11
acknowledging stakeholders’ right to be heard and
accounting for one’s actions to stakeholders
Principles
Materiality Completeness Responsiveness
Knowing what is Understanding Demonstrating
important to you and your impact and adequate response
your stakeholders what people think
of you
Inclusivity
Ubuntu? Zhu, Bhat, & Nel, 2005

12. 12
Admired/ successful corporation
Driving Corporate Reputation
Corporate Reputation
Management
Delivering quality Meeting stakeholder
products & services needs & expectations

13. 13
Integrated Marketing Strategy
Character (what we are )
Culture Constituencies
(what we feel we are ) (whom we seek to serve-
Stakeholders)
Concept
Communication
(what we are seen to be)
(what we say we are )
Covenant
(what is promised and expected)
(Balmer & Greyser, 2006)

14. 14
Imperative to switch focus:
Resulting Shift
from. . . to. . .
managing
managing
relationships as
perceptions
drivers of corporate
as drivers of
reputation and
corporate
resulting business
reputation
outcomes

15. Corporate Reputation focus: 15
Resulting Shift
A corporate reputation is a stakeholder's overall
evaluation of a company over time.
This evaluation is based on the stakeholder's direct
experiences with the company, any other form of
communication and symbolism that provides
information about the firm's actions and/or a
comparison with the actions of other leading rivals.
Gotsi & Wilson, 2001

16. 16
Drivers of Engagement
Title of slide
• Sub text

17. 17
3 Significant Stakeholder Trends
3 major trends
Trend 1: Corporate engagement moving from
companies with formerly recognisable brands and
reputations to formerly invisible companies.
Trend 2: Increase in stakeholder diversity &
complexity and the range of issues they raise or
champion.
Trend 3: Increasingly sophisticated approaches to
engagement by corporation seeking “win-win”
outcomes with stakeholders

18. 18
What does this mean for business?
Business success requires mastery of the
‘relationship imperative’ -- a philosophy that
underscores the critical role of open,
interactive, and information-rich relationships
between a corporation and its stakeholders.
Driving business outcomes

19. 19
What does this mean for business?
stakeholder management stakeholder collaboration
fragmented integrated
focus on managing relationships focus on building
relationships
emphasis on buffering the focus on creating
organization opportunities and mutual
benefits
linked to short-term linked to long-term business
business goals goals
dependent on division coherent approach driven by
interests and personal style business goals, social
of manager mission, and values

20. reputational
social reporting
capital
and compliance
Increasingly,
corporate reputation
is understood as
Information on the
being built through
quality of stakeholder
the organisation’s
relationships is part of
measuring and
stakeholder relationships with all
stakeholders
reporting social/
environmental impacts relations
organisational
performance
corporate
governance Relationships as a
stakeholder business asset and a
Good governance
principles increasingly
engagement management
competence. People
also incorporates The quality of relationships need to be keen to
guidelines on drives stakeholder buy from, work for,
stakeholder engagement engagement and supply to, and invest
(i.e. King III) responsiveness, ensuring the in a business.
need and objectives of
stakeholders are taken into
account 20

21. 21
The Business case
strategic
collaborative solutions
case
early
warning system issue identification
risk management conflict mitigation

22. 22
Critical questions . . . .
Who are our stakeholders?
What do we want from our stakeholders?
What strategies do we need to put in place to
satisfy these wants?
What processes will we follow to execute our
strategy?
What capabilities do we need to put in place?
Performance Prism: Neely, Adams, & Kennerly, 2002

23. Effective Stakeholder Engagement 23
S
Strategic
Thinking
E
Effective
Learning
T
Terms of
Review
engagement
What’s at STAKE?
K
Key A
Operatives Ability to
respond

24. 24
Holistic Stakeholder Relationship Management
Assess/ evaluate Improve the effectiveness
engagement effectiveness of everyday SH
and incorporate in engagement through SH
sustainability reporting engagement policy
Develop the Stakeholder
Stakeholder Hub with
Assess the Relations information on Gap Analysis
environment Strategy priority Action plan for
(the difference
(analyse stakeholders between the ‘as is’ stakeholder
(where will we focus and the ‘desired end engagement
stakeholders and our scarce (detail about
issues) state’)
resources to relationship health,
achieve the highest current engagement
impact?) practices etc.)
Special interventions:
Measure impact and high-impact projects to
incorporate in realise the Stakeholder
sustainability reporting Relations Strategy

25. Global Organisational Development• Leadership •Sales & Marketing Strategy
•Negotiation•Broadcasting
“Equipping for Excellence”™
Chartered Marketer - CMSA (Services SETA & European Marketing Council)

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