Stakeholder: Any person or group that affect or are affected by an organization’s decisions,

policies, or operations.

Firm

Regulators

Customers

Employees

Lenders

InvestorsCommunity

Stakeholder MapStakeholder Map: The Classic Wheel

Market (or Primary) Stakeholders:Engage in market transactions with the firm as it carries out its primary purpose of providing society with goods and services. For example:

• Employees• Stockholders• Creditors• Suppliers• Customers• Distributors, wholesalers, retailers

Nonmarket Stakeholders:No direct economic exchange, but affect or are affected by the firm.

• Communities• Governments• Activist groups (e.g., public interest groups)• Media• Business support groups• General public

Stakeholder Interests

! • Material! • Political! • Affiliative! • Informational! • Symbolic! • Spiritual

! • Power

! ! • Voting (formal governance)! ! • Economic! ! • Political! ! • Legal

! • Legitimacy

! • Urgency

Bases for Stakeholder Demands

Source: Wartick and Wood 1998; Mitchell, Agle, Wood 1997.

Stances of Stakeholder Engagement:

• Inactive • Reactive • Proactive • Interactive

Stakeholder Analysis:1. Who are the relevant stakeholders?2. What are the interests of each stakeholder?3. What is the power of each stakeholder?4. What is the legitmacy of each stakeholder and/or their claims?

6. How are coalitions likely to form: What are the structures or networks of stakeholder influence?

5. What is the urgency of each stakeholder?

6. How should each stakeholder be managed, given their particular interests, power, legitimacy, urgency, and allies? How should the constellation of stakeholders be managed as a set?