Lesson 2: STRATEGIC MANAGEMENT OF STAKEHOLDER RELATIONSHIP

STRATEGY - A plan of action taken to achieve objectives.

3 STEPS:
a. Formulation
b. Implementation
c. Evaluation
STRATEGIC MANAGEMENT - is a process of creating a competitive advantage over its
competitors and sustaining this advantage in the long term.

STRATEGIC MANAGEMENT PROCESS

Process of Strategic Management
1. Establish Goals - creating and or clarifying the business vision/mission and identifying
goals.
a. Vision: what the company envisions itself to be in the future or to become
b. Mission: describes what the company is all about; who they are, what and how
they do things, and for whom
c. Goals; desired outcome of planning, broader than the objectives.
d. Objective: aimed targets that are needed to achieve a goal.
2. Scan the Environment - perform a thorough analysis and assessment of the internal and
external environment of the company.
a. External: looks at the external opportunities and threats, given the dynamics of a
particular industry.
b. Internal: looks at a company’s strengths and weaknesses by assessing its
resources.
 Formulation: develops top-level strategies that can be trickled down to
the rest of the organization
Implementation: executes developed plan by providing detailed objectives
and action plans
Evaluation: measures and assesses results, and recommends changes
for improvement, if necessary

Who are the Stakeholders?

They are the individuals or groups of people who can be affected by the activities
engaged in by a corporation in achieving their goals.
1. Shareholders (investors, owners, or anyone who has a financial stake in the company)
2. Customers
3. Employees
4. Suppliers
5. Society (government, civil society, institutions)

Stakeholders Theory
- It is one of the key arguments used in understanding CSR.
- It states that companies are responsible for generating reasonable profits for their
shareholders, but should also be responsible for their stakeholder’s well being
(Freeman, 1984).

STRATEGIC CSR

STRATEGIC CSR FRAMEWORK

STEPS IN STRATEGIC CSR PLANNING:
1. Identify the goals / objectives of the company.
2. Scan the environment by looking at the internal and external situations by which the
company operates. (Provides a foundation and aids in developing strategic CSR
programs).
3. Formulate a CSR strategy that is aligned with corporate operations.
a. Identify how they will approach their CSR initiatives (corporate donations, work
with foundations and intermediaries) and programs (single, focused,
multi-program activities), and understand the needs of the stakeholders.
4. Implement the CSR program with consistency, meaning, programs are aligned with the
company’s goals and objectives. Cohesiveness of the entire process is an important
element of strategic CSR.
5. Evaluate the program if it has achieved its desired objectives and outcome. Should there
be gaps and inconsistencies in the plan and execution of the programs, remedial efforts,
or ways to improve these initiatives should be undertaken.
SUCCESS INDICATORS:
1. Alignment of CSR with Business Strategy
2. Leadership
3. Employee Engagement (employee volunteerism)
4. Collaboration
5. Communication
6. Value Creation - ultimate goal of business (to create sustainable value) for its
stakeholders.