Chapter 2 - Managing Public Issues

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    Chapter 2

    Managing Pub l ic Issues andStakeho lder Relat ionsh ips

    .

    Prepared by :

    1. Augustpaosa Nariman (126131004)

    2. Fanny Andriani (126131005)

    3. Yu li Angelia (126131006)

    4. Kenny Fi telia (126131012)

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    Ch. 2: Key Learning Objectives

    Evaluating public issues and their significance to the

    modern corporation Applying available tools or techniques to scan an

    organizations multiple environments

    Describing the steps in the issue management

    process and determining how to make the processmost effective

    Identifying who is responsible for managing publicissues and the skills required to do so effectively

    Understanding how business can build collaborative

    relationships with stakeholders through engagement,dialogue, and network-building

    Identifying the benefits of stakeholder engagement tothe business firm

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    Public Issues

    Public issueAny issue that is of mutual concern to an organization

    and one or more of its stakeholders

    Stakeholder expectationsA mixture of peoples opinions, attitudes, and beliefs

    about what constitutes reasonable business behavior

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    Public Issues: Performance-

    Expectations Gap

    Discrepancy between what stakeholdersexpect and what an organization is actuallydoing

    Important to identify emergent expectations

    as early as possible Doing so can gain the company competitive advantage

    Failure to understand stakeholder concernsand to respond appropriately will:

    Cause the performanceexpectations gap to grow The larger the gap, the greater the risk of stakeholder

    backlash or missing a major business opportunity

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    Figure 2.1

    The Performance-Expectations Gap

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    The Corporations Boundary-

    Spanning Departments

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    Figure 2.2

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    Environmental Analysis and

    Intelligence

    Environmental analysisA method managers use to gather information about

    external issues and trends, so they can develop an

    organizational strategy that minimizes threats and

    takes advantage of new opportunities

    Environmental intelligence

    The acquisition of information gained from analyzingthe multiple environments affecting organizations

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    Eight Strategic Radar Screens

    Figure 2.3

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    Competitive Intelligence

    The systematic and continuous process ofgathering, analyzing, and managing external

    information about the organizations competitors

    that can affect the organizations plans, decisions

    and operations

    Numerous ethical issues arise in acquisition and

    use of information gathered through competitive

    intelligence, public affairs managers must bekeenly aware of these issues

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    Figure 2.4

    The Issue Management Process

    The process continuously cycles back to the beginning and repeats

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    The Issue Management Process

    1. Identify Issue

    Anticipating emerging concerns, or horizon issues2. Analyze Issue

    Evaluating the issue; coming to an understanding ofhow it will evolve and how it will affect the organization

    3. Generate Options Evaluating action options, involves complex

    judgments that take into account non-quantifiablefactors like the companys reputation

    4. Take Action Once option is chosen, must design and implement it

    5. Evaluate Results Must assess results of the program and make

    adjustments as needed2-11