Mata kuliah
Tahun
: 00324 - CRISIS COMMUNICATION AND PUBLIC
RELATION
: 2010
CONFLICT AND STRESS IN
ORGANIZATIONS
Pertemuan 25 – 26
By: Dr. Drs. Dominikus Tulasi, MM.
Learning Objectives
 Understanding the importance of stakeholders
 List the key components of stakeholder relations
 Understand the diversity and typical
stakeholders
 Start to build balancing the interests of different
stakeholders
 Understand management responsibilities as
stakeholders
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MANAGING STAKEHLDER RELATIONS
 The term ‘stakeholder’ originated in the physical act of
miners staking a claim: in the past, miners marked each
boundary of their territory by hammering a stake into the
ground. The term is now commonly used to describe
individuals and organizations who affect, or can be
affected by, the organizations actions. Another way to
describe a stakeholder is any person, group or
organization that can place a claim on an organization’s
attention, resources or output, or is affected by that output.
The have a stake in the organization, something at risk,
and therefore something to gain or lose as a result of
corporate activity.
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MANAGING STAKEHLDER RELATIONS
(1)
 The management of relations with stakeholders is
crucial to the resolution of issues facing
organizations. By using their influence,
stakeholders hold the key to the environment in
which organizations operate and the
organizations’ subsequent financial and operating
performance. Thus the effective management of
stakeholder relations is growing as a key focus of
PR and organizational activity.
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The aim of stakeholder relations management is
to influence stakeholder attitudes, decisions, and
actions for mutual benefit. The stakeholders
need to gain from the relationship or they may
not be sufficiently motivated to cooperate.
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THE GROWING IMPORTANCE OF
STAKEHOLDERS
 Globalization—most organizations need to
compete more strongly for customers, capital and
employees as more of the world opens up to
international trading markets.
 The rise of professional investor—more than ever
before, companies are subject to the influence of
professional fund managers.
 The rise of the sophisticated customer —
customer expectations are higher than ever
before. The rise of the empowered employee.
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 The information revolution—electronic
information technology equips stakeholders
with information almost instantly.
 Rising awareness of the influence of business
on society—ethics and corporate integrity are
high on society’s agenda today.
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MANAGEMENT OF STAKEHOLDER
RELATIONS
 Identifies those people or groups/organizations
who have a stake in the issue/s affecting the
organization;
 Assesses the potential of stakeholders for
cooperation or competition in the policy
process;
 Involves planning and implementing a strategy
for dealing with each stakeholder.
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MANAGEMENT OF STAKEHOLDER
RELATIONS (1)
The stakeholder relations activity basically:
 Aligns corporate objectives and stakeholder
expectations;
 Informs stakeholders on corporate policies and
procedures;
 Identifies problems with stakeholders before
they become major issues or crisis.
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TYPICAL STAKEHOLDERS
Typical stakeholders of a large organization include:
 Employee, prospective employees and retired employees;
 Chairman, directors, chief executive, various management
levels;
 Local, national, government,
 Global, national, media
 Individual investors, institutional, advisers;
 industry, educational institutions; community members and
leaders; corporate office; landlords; suppliers; creditors;
retailers; customers; competitors; environmental interest
group;
 Unions and related labor groups;
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ASSESSING THE STRATEGIC VALUE OF
STAKEHOLDERS
 To what extent will the strategy affect each group,
positively or negatively?
 How far does the strategy align with their existing
beliefs about the organization’s values and purpose?
 How far do they share the organization’s values and
purpose in this area?
 What potential do hey have to influence the business
directly or indirectly, positively or negatively?
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 How robust is the existing relationship with them?
 How likely will actions towards one stakeholder
group influence the attitudes of other stakeholder
groups?
 What are the consequences of this?
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EFFECTIVE COMMUNICATION WITH
STAKEHOLDERS
 Face-to-face meetings and briefings;
 Newsletters and background information targeted at
specific stakeholders groups;
 Email information updates;
 Privileged access to Web information, is on extranets;
 Invitations to attend events such product launches;
boardroom lunches; VIP dinner & presentations.
 Corporate hospitality activities;
 Discount offers to members or shareholders;
 Privilege offers to cardholders & members of group
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BENEFITS OF A GOOD REPUTATION
 Increased productivity and morale;
 Increased stakeholder confidence in the
organization;
 More investors and lower cost of capital;
 Easier formation of alliances;
 Positive influencing of brand selection and loyalty,
is increased market share;
 Lower marketing and distribution costs;
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 Less hostility from regulators, minimizing overregulation;
 Enhanced attitudes of customers to sale staff
and products during the buying process;
 Higher perceptions of product quality;
 Deterrence of competitor entry into the market.
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BENEFITS OF A GOOD REPUTATION (1)
 Enhanced competitive ability of the firm;
 Stronger employee support and recruitment of
talented staff;
 Fewer risks of crises, and when crisis do occur;
 Stakeholders give the organization greater latitude to
act in resolving issues;
 More believability in the organization;
 More favorable media coverage;
 Greater access to new global markets.
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MAIN COMPONENTS OF CORPORATE
REPUTATION
 Ethical: behaves ethically, is admirable, is worthy
of respect;
 Employee/workplace: has talented employees,
financial performance: is financially strong, has a
record of profitability,
 Leadership: is a leader rather than a follower, is
innovative.
 Management: is well managed, has high quality
management, has a clear vision for the future.
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




Social responsibility
Customer focus
Quality
Reliability: provide consistent services;
Emotional appeal: I feel good about;
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STEPS TO BUILD REPUTATION
 Conduct more research to know key stakeholders better.
 Assess stakeholder strengths & weaknesses, & focus on
the gap between internal realities & stakeholder
perceptions.
 Research the main factors comprising the reputation of
the organization and align them with policies, systems &
programs;
 Set plans to exceed stakeholder expectations.
 Involve the CEO as the greatest ally or champion of a
reputation program;
 Measure regularly against targets and act to improve the
results.
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