STAKEHOLDER IDENTIFICATION & PRIORITIZATION

@JOHNFRIEDMAN

• 20+ years communications professional• 10+ sustainability

– Program strategy, development and implementations

– Stakeholder communications• Sustainable Business Network of Washington• Centre for Sustainability and Excellence

VISION CSE’s overall objective is to create positive impact and added value for all

stakeholders across the Triple Bottom Line.

MISSION To coach and support Organizations, Society and Governments in making a

sustainable difference in the world.

Vision and Mission

CSE is an global advisory and training organization that provides Sustainability Solutions to the public and private sectors.

As an international network of specialists and consultants, CSE provides organizations, governments, and institutions unique and advanced services to achieve Stakeholder Value across Operational and Organizational frameworks.

CSE WORLDWIDE ACTIVITIES*

Worldwide Activities Include: Projects, Conferences, Workshops and various other activities Cities marked in red represent CSE Offices

CSE GreeceCSE Greece

CSE CyprusCSE Cyprus

Great BritainGreat Britain

SpainSpain

LuxembourgLuxembourg

UAE (Dubai, Abu Dhabi)UAE (Dubai, Abu Dhabi)

GermanyGermany

BulgariaBulgaria

TurkeyTurkey

RomaniaRomaniaBaltic Countries (Latvia)Baltic Countries (Latvia)

EgyptEgypt

ItalyItaly

IndiaIndia

Singapore

Saudi Arabia

CroatiaCroatia

AustriaAustria

CSE N. America

CSE BelgiumCSE Belgium

QatarQatar

Solutions for Sustainability

Sustainability (CSR)Reporting based on

GRI Guidelines

Supply Chain

Management

Certified Training

Workshops& Webinars

Life Cycle Assessment (LCA)

&Carbon

Footprint

Green & Social Cause Marketing

Sustainability Verification &Assurance

CSE PARTNERSHIPS AND CLIENTS

WHAT WE’LL COVER

• Stakeholder Identification & Prioritization• Transparency, Communication &

Accountability– Social Media

• Workshop Exercise: Stakeholder Assessment Matrix

• Conclusions and Questions

STAKEHOLDER IDENTIFICATION & PRIORITIZATION

SUSTAINABILITY – A BUSINESS CARE

Creating Value for all Stakeholders

Social Recognition

Building

Confidence

Minimizing Risk Lo

ng-term

growth

Innovations

New

Marke

t Areas

Social & Enviromental

Licence to Operate

FIVE KEYS TO MAXIMIZING SUSTAINABILITY EFFORTS

• Aligns with your Core Business Model• Integrates Sustainability into Day-to-Day

Operations• Employees are Actively Engaged and

Empowered• Provides Tangible, Credible Benefits• Maximizes Stakeholder Engagement

STAKEHOLDER IDENTIFICATION

Primary stakeholders• Stakeholders who are

critical to the company’s existence & activities

Secondary stakeholders• Stakeholders who are

affected by a company’s activities & decisions

1. Customers2. Employees3. Shareholders4. Suppliers5. Competitors6. Communities

STAKEHOLDER PRIORITIZATION

CompetitorsCompetitors

Consumergroups

Consumergroups

Insurers &

Litigators

Insurers &

Litigators

GeneralMedia

GeneralMedia

Generalpublic

Generalpublic

AdvertisersAdvertisers

AdvocacyOrgs

AdvocacyOrgs

Localcommunity

Localcommunity

BizMedia

BizMedia

RegulatorsRegulators

Company

AnalystsAnalysts

ShareholdersShareholders

EmployeesEmployees

GovernmentGovernment

ClientsClients

UnionsUnions

Celebrities &

Role models

Celebrities &

Role models

BloggersBloggers

SuppliersSuppliers RetailersRetailers

TRANSPARENCY, COMMUNICATION & ACCOUNTABILITY

Tangible Values

Intangible Values

Financial Capital

Physical Assets

(Generally Audited Financial Information)

(Generally Non-audited, Non-financial Information)

Intellectual property

Unallocated goodwill

Labor environment

Brand loyalty

Sustainability

Quality of employees Community

support

Intellectual property

Unallocated goodwill

Labor environment

Brand loyalty

Sustainability

Quality of employees Community

support

• Needed for quality income

• Necessary to get low cost of capital

• Critical to hire/retain the best employees

• Gets you through rough times

• Avoids commodity pricing/builds value added

REPUTATIONAL CAPITAL(BRAND EQUITY; GOODWILL)

• Far beyond the goods and services your company provides

• The IMPACTS* those goods and services and the manner in which they are produced have on peoples’ lives

WHAT DOES YOUR COMPANY DO?

* Real and perceived

• To improve company valuation, Improve CSR relationships!

• Good CSR Relationships Lead to The Sustainable Corporation

CONCLUSION:

• Your stakeholders are being engaged right now. Either about you, or without you.

• If your customers are posting negative reviews on Facebook, Yelp, etc., you probably should be listening.

• If your employees are saying things you don’t like about you on twitter, the problem is not twitter.

WHY JOIN THE CONVERSATION?

YOU WERE NEVER IN ‘CONTROL’ OF YOUR BRAND

YOU WERE NEVER IN ‘CONTROL’ OF YOUR BRAND

YOU WERE NEVER IN ‘CONTROL’ OF YOUR BRAND

YOU WERE NEVER IN ‘CONTROL’ OF YOUR BRAND

• Traditional media has not been without its growing pains and missteps either.

BLOGGERS ARE THE PROFESSIONAL JOURNALISTS OF THE 21ST CENTURY

SOMETIMES 140 CHARACTERS IS ENOUGH TO GALVANIZE THE WORLD

32 CHARACTERS WERE ENOUGH TO TELL THE WORLD OF THE MIRACLE UNFOLDING IN CHILE

– AND TO HELP MAKE IT HAPPEN

POWER OF THE INTERNET

ENGAGE THE POWER OF SOCIAL MEDIA

• Engage with Customers • Empower your Employees• Inform Shareholders• Build relationships with Suppliers• Uphold high standards with your Competitors• Integrate with your Communities

EXERCISE: IDENTIFYING STAKEHOLDERS & CORPORATE RISKS

THE STAKEHOLDER APPROACH & CSR

Objective: To understand and identify stakeholders’ different expectations of your organization;To be able to implement systematic methods for identifying stakeholders’ expectation

Tasks: 1. Identify at least 3 different stakeholder groups of your organization and their potential needs / expectations. 2. Complete the supplement table and identify at least one risk per stakeholder for your organization

3. Identify systematic ways for engagement with the selected stakeholders

IDENTIFYING STAKEHOLDERS RISK MODEL

STAKEHOLDER RISK IMPACT PROBABILITY PRIORITY

Customers Loss of market share

3 3 9

Employees Reduced loyaltyLack of engagement

Shareholders Dump your stock

Suppliers Loss of relationships

Competitors Predate customers

Community Barriers

IDENTIFYING STAKEHOLDERS OPPORTUNITY MODEL

STAKEHOLDER OPPORTUNITY BENEFIT LIKELIHOOD PRIORITY

Customers Pay a premiumBrand loyalty

3 3 9

Employees RecruitmentRetentionProductivity

Shareholders Loyalty

Suppliers Pricing

Competitors Co-opetition

Community License to Operate

• Community IT Innovators • 1330 U St, NW - Suite 200

Washington, DC • 5 – 7 PM