Chapter 2

Question 1

What is public issues?

Answer 1

• an issue that is of mutual concern to an organisation and stakeholders
• Also called the social or socio political issue
• The emergence of public issues indicated that there is a gap between with the firm wants to do and what the stakeholders expect (performance expectations gap)

Question 2

Types of public issues? (3)

Answer 2

1. sexual harassment
   Became a huge public issue and companies had to respond to rising stakeholder demands for ethical behaviour
2. Consumer safety
   Chipotle face multiple food safety issues which leads to public concern and reputable damage
3. protection of personal information
   Daughter breaches have compromise sensitive information from companies , cyber criminals explored weaknesses highlighting business failures (update security measures) , leads to public concerns of a data privacy and corporate responsibility

Question 3

Environmental analysis?

Answer 3

A method that managers used to gather information about external issues and trend

Question 4

Environmental intelligence?

Answer 4

The acquisition (obtaining) of information gained from analysing the multiple environments affecting organisations

Question 5

Competitive intelligence?

Answer 5

Systematic and continuous process of gathering ,analysing and managing external information about the organisations competitors that can affect organisations plans, decisions and operations

• helps organisations understand what other companies in the industry are doing
• Enables managers to make informed decisions from marketing, research and development of long-term business strategies

(Apple monitor Samsung’s latest smart phone releases)

Question 6

Stakeholder materiality?

Answer 6

Adaption of an accounting term that focuses on the importance or significance of stakeholders for the firm
- after in Info is collected it is placed on a matrix that shows the importance of this issue for the stakeholder (stakeholder materiality matrix)

Question 7

8 strategic radar screens?

Answer 7

1. Customer environment.
2. Competitive environments.
3. Economic environment.
4. Technological environment.
5. Social environment.
6. Political environment.
7. Legal environment.
8. Geo physical environment.

Question 8

Issue management?

Answer 8

Actively managing issues as they arise

Question 9

Issue management process? (5)

Answer 9

1. identify issue
2. analyse issue
3. generate options
4. take action
5. evaluate results

Question 10

1. Identify issue?

Answer 10

anticipating emerging concerns, track media, expert, activist and laws
- We use data analysis surveys and stakeholder talks
- a company detects an increase in customer complaints about unauthorised access in their account(horizon issue) - they track media reports and cyber security expert warnings
- Horizon issue are emerging concerns

Question 11

2. Analyse issue?

Answer 11

Organisation must understand how the issue can evolve and how it can affect them, for each company. The issue will be different

• Company assesses the extent of the legal breach, potential legal implications and customer impact

Question 12

3. Generate options?

Answer 12

requires complex judgements that incorporate ethical considerations, org reputation and good name
- generating, evaluating and selecting among possible solutions
- Possible solutions including enhancing security measures compensating affected customers or issuing a public apology (decision considers ethical/company reputation)

Question 13

4. Take action?

Answer 13

once option is chosen, organisation must now design and implement a plan of action, There might be unintended consequences from the action undertaken by the company
- The company implement stronger cyber security protocols, informed customers and offers identity protection services

Question 14

5. Evaluate results?

Answer 14

organisation must continue to assess result in adjust if necessary

• Company monitor security improvements, customer trust, regulatory compliance and making adjustments as needed

Question 15

Stakeholder engagement ?

Answer 15

Process of ongoing relationship building between a business and its stakeholders

Question 16

Stakeholder dialogue?

Answer 16

Conversations between representatives of a company and its stakeholders about issues of common concern
- The goal is to define problems, explore solutions and create strategies for mutual benefits

Question 17

Stages of stakeholder relationship? (4)

Answer 17

1. inactive
2. reactive
3. proactive
4. interactive

Question 18

Stakeholder relationship
1. inactive

Answer 18

Companies Ignore stakeholders concerns, incorrectly believe that they can make decisions unilaterally without taking into consideration the impact on others

Question 19

Stakeholder relationship
2. Reactive

Answer 19

Only act when they’re forced to do so and then in a defensive manner

Question 20

Stakeholder relationship
3. Proactive

Answer 20

Companies Try to anticipate stakeholder concerns ,use environmental scanning analysis to identify merging public issues

Question 21

Stakeholder relationship
4. interactive

Answer 21

Companies actively engage with stakeholders in an ongoing relationship of mutual respect/honesty/openness/trust

Question 22

Role of social media in stakeholder management
Business use of social media ?

Answer 22

• companies use social media to engage stakeholders, address public issues and improve communication
• Helps businesses identify problems, share internal information and gather customer feedback

Question 23

Drivers of stakeholder engagement?

Answer 23

• goal
• Motivation
• Organisational capacity

Question 24

Drivers of stakeholder engagement
goal, motivation?

Answer 24

goal
-Both business and stakeholding must share a problem that needs solving
- Business act there is a gap between their actions and public expectations (regulatory threats, and reputational risk)
- Stakeholder engagement on issues important to them(child labour, environmental harm)
motivation
- both sides must be motivated to collaborate
- Businesses may seek stakeholder expertise, approval or influence over policy makers
- Stakeholders rely on companies to drive real change

Question 25

Drivers of stakeholder engagement? organisational capacity?

Answer 25

**organisational capacity** - both sides need resources and leadership support by effective engagement - Businesses require executive backing structured issue management process - Stakeholders need leadership or unit specialise in corporate engagement

Question 26

Performance expectation gap?

Answer 26

**Perceived distance between what a firm wants to do or is doing and what the stakeholders is expect** - emerging issues have both **opportunity and risk** - businesses must identify/respond to emerging expectations to avoid backlash/missed opportunities

Question 27

Managing public issues?

Answer 27

- **public issue span multiple departments** ( legal, corporate affairs, public relations) - Some companies assign a **designated public affairs department** to handle emerging issues - McDonald’s ~ **faced criticism** over the plastic straw waste ~ they **engaged with stakeholders**(customer, environmental groups and suppliers)~ announced a **transition to paper straws**

Question 28

Custom environment and competitive environment?

Answer 28

**Custom environment** - Demographics (age gender marital status, buying preferences) - Social media has influenced marketing strategies (digital coupons) **competitive environment** - Number and strength of competitors, market share strategies and potential alliances - Risk of customer switching to competitors for better offers

Question 29

Economic environment and technological environment?

Answer 29

**Economic environment** - factors like costs, prices and international trade impacts business decisions - Economic recession significantly affect customers, suppliers and stakeholders **technological environment** - Advances in technology impact businesses, customers and stakeholders - Faster information access through smart phones, influences business operations

Question 30

Social environment and political environment?

Answer 30

**Social environment** - cultural values, trends and social conflict in business regions - Issues like civil rights, family values and special interest groups in influence B decisions **Political environment** - Government structures, regulations and stability at local, national and international levels - Strict environmental laws impact business practices worldwide

Question 31

Legal environment and geophysical environment?

Answer 31

**Legal environment** - Intellectual property laws(patterns, copyright, trademarks) and anti-trust regulations - Trade protectionism and corporate liability concern shape global B strategies **Geophysical environment** - Physical surroundings of business facilities and natural resource dependencies - Climate change and energy efficiency concerns drive corporate sustainability efforts

Question 32

Successful stakeholder dialogue requires?

Answer 32

- **Open communication and active listening** from all parties - **Respectful and creative thinking** to develop solutions - **collaboration to implement solutions** that individuals or businesses alone couldn’t achieve

Question 33

Advantages of corporate social networking?

Answer 33

- employees can engage with colleagues on a separate corporate social platform - Internal blogs, project discussions and company updates help with work related communication - Some employees prefer keeping personal and professional lives distinct

Question 34

Challenges and disadvantages of social media in stakeholder management?

Answer 34

- **High costs** - companies most highest specialist to build and maintain networks - Company spend time creating **profiles, updating content and networking** during work hours - **Limited access** after leaving the company makes corporate networks less appealing - Content posted remains **company property** discouraging employees from using it for recognition

Question 35

Social media and stakeholder management Impact on business communication?

Answer 35

- Despite challenges, businesses increasingly rely social media for stakeholder engagement - Improves communication speed, collaboration and issue management

Question 36

Stakeholder networks?

Answer 36

- Sometimes a single firm cannot **effectively address an issue alone** - businesses collaborate with **other companies and advocacy groups** to tackle shared concerns - nike worked with **environmental organisation and consumers** to improve sustainability and appeal and foot weight production

Question 37

**The benefits of engagement** Advantages of engaging with stakeholders ?

Answer 37

- **early detection of emerging issues** (Consumer concerns about antibiotic used in food) - **Access to unique expertise and networks** for information (sharing) - **Stronger corporate reputation** and alignment with public expectations

Question 38

Business is responding to social issues can?

Answer 38

Influence public policy and corporate strategy

Question 39

Five key drives to stakeholder engagement?

Answer 39

- **Communication** - **Individual empowerment** - **Automation of work** - **Climate change and sustainability** - **Supply chain impact**

Question 40

Effective issue management requires?

Answer 40

- **Proactive strategy development** for public concerns - **collaboration across organisations and with external stakeholders** - **involvement of leaders** to implement long-term engagement strategies

Question 41

Role of public affairs?

Answer 41

- help companies anticipate **emerging concerns and stakeholder expectations** - Enhances an organisations ability to engage **proactively rather than reactively** - many companies have **expanded or created public affair roles** - companies recognise the **importance of engaging with external stakeholders**

Question 42

Effective issue management requires?

Answer 42

- **foresight, engagement and collaboration** with stakeholders