This document discusses using a stakeholder strategy framework to manage corporate social responsibility and sustainability reporting for a large, global Fortune 500 company with over 25,000 employees across 40 countries. It proposes analyzing all relevant issues from the perspective of the company's various stakeholders, which are grouped into over 30 categories including employees, communities, shareholders, governments, customers, suppliers and more. All stakeholders would be placed on a 3x3 matrix based on dimensions like power and influence. Issues for each stakeholder are also scored and prioritized. The goal is for all stakeholder interests to be aligned in the long term of 7 years or more, while allowing flexibility in the short term.
4. *
*Original Question “How do we manage
CSR, Environmental Accounting, Triple
Bottomline, Global Reporting Initiative, Social
Accounting, Ethics etc.?”
*The Correct Question - “All such issues and
more need to be analyzed within a Stakeholder
Strategy Perspective. Let me show you how to
do so using a Stakeholder Strategy
Framework.”
6. *
* Employees
* Communities
* Shareholders
* Creditors
* Investors
* Government
* Customers
* Suppliers
* Labor unions
* Government regulatory agencies
* Government legislative bodies
* Government tax-collecting agencies
* Industry trade groups
* Professional associations
* NGOs and other advocacy groups
* Prospective employees
* Prospective customers
* Local communities
* National communities
* Public at Large (Global Community)
* Competitors
* Schools
* Future generations
* Analysts and Media
* Alumni (Ex-employees)
* Research centers
7. *
* All Stakeholder Frameworks use 2 Dimensions on a Matrix for analysis. And
sometimes a third dimension as Color of the Symbol of the Stakeholder
* We will use 2 Hierarchical Matrix’s but more on that later.
* Some common dimensions used are
* Power (high, medium, low)
* Support (positive, neutral, negative)
* Influence (high or low)
* Need (strong, medium, weak)
* We will use one of 2 sets of Dimensions (i) Need vs Power, or (ii) Need vs
Our Impact
* We need to make an upfront choice between the two, choosing set (i) is
Realism and choosing set (ii) is Idealism
* Once we do that we place the stakeholders on the 3x3 matrix. And as
usual addup the x-y axes co-ordinates to get the stakeholder score. See
next slide
9. *
*Of Issues per Stakeholder (shown below for
Customer Stakeholder)
10. *
* On both the matrix’s the x-y co-ordinates on the axes are
added up to get a score
* The scores for Stakeholder Issues are added to the Base
Score for the Stakeholder in the previous matrix
* Golden Rule: In The Long Terms all Stakeholder Interests
should be aligned. Which is not necessary in the short term
* Short Term is defined as < 7 years
* Long Term is defined as >= 7 years
* We will eventually get a score of all issues on a scale of 0-8
* We spread issues with scores between 2-8 both inclusive
evenly across 7 years
* Any time sensitive Blockers are prioritized Manually as an
exception to the framework.