3 Flashcards
(11 cards)
What is „value”?
The moral and social embeddedness of economic activities
Value = cultural and moral principles accepted and promoted by a given society
Added value as a result of economic activity
Value-based company
Embedded operation
Creating value for a stakeholder group (financial or other)
Value creation through the business model
International Integrated Reporting Council (IIRC)
- Integrated reports – financial and sustainability reports
- Value creation as the theoretical foundation of integrated reporting (IR) (2013)
- Integration process – resources, processes to create value (or destroy value) taking place in an environment determined by stakeholders
Business as a network of stakeholder relationships
Social embeddedness of businesses
the extent to which organizations are connected to other actors via linkages of a social networkor the extent to which human action of consumers (including their economic behavior) takes place within a web of social attachments such as friendship and kinship (Uzzi and Gillespie 2002)
What is important about stakeholders?
They are vital to the survival and success of the organisation.
Their relationship with the organisation enables them to be benefited by the company’s actions and operations.
This relationship also makes it possible for the organisation to harm them or to violate their rights.
The bases for stake
Legal - A contract exists
Moral - Emplloyees: justice, fairness, equality etc.
- Fairtrade based on fair treatment of Third World producers
Risk taking - Shareholders, employees financial dependency
Other connections - Brand lovers
primary&secondary stakeholders
How close the relationship is:
Stakeholders related to the economic transactions (owners, customers)
Other stakes (local communities, activist groups)
internal&external stakeholders
Determined by the physical boundaries of the organisation
Powerhas three dimensions
Coercive – “based on the physical resources of force, violence or restraint”
Utilitarian – “based on material or financial resources”
Normative – “based on symbolic resources,” such as prestige, esteem, love and acceptance.
Stakeholder management
Theprocess by which you organize, monitor and improve your relationships with your stakeholders. It involves systematically identifying stakeholders; analyzing their needs and expectations; and planning and implementing various tasks to engage with them.
Stakeholder Engagement Continuum
Monitor
Message
Advocate
Consult
Dialogue
Collaborate
Stakeholder engagement - AccountAbility
Think Strategically
Analyse & Plan
Strengthen Engagement Capacities
Design Process & Engage
Act, Review & Report
