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The Four Steps Of Stakeholder Relations: What Is A Stakeholder?

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What is a stakeholder? Stakeholders are persons or groups that have, or claim, ownership, rights, or interests in a corporation and its activities, past, present, or future. Stakeholders with similar interests, claims, or rights can be classified as belonging to the same group: employees, shareholders, customers, and so on (Clarkson, 1995). Freeman (1984) defined a stakeholder as any group or individual who can affect or be affected by the achievement of an organizations objectives. Types of Stakeholders According to Clarkson (1995) primary stakeholder group is one without whose continuing participation the corporation cannot survive as a going concern. Primary stake holder groups typically are comprised of shareholders and investors, employees,…show more content…
Whereas relation is defined as the way in which two or more people behave toward and deal with each other. Combining the two words we can say that stakeholder relation is the exercise of how people or groups deal with each other and their concern on an organization. According to Mack (2016) stakeholder relations is the practice of forging mutually beneficial connections with third-party groups and individuals that have a “stake” in common interest. The Four Steps of Stakeholder Relations 1. Identify Stakeholders The first stage in stakeholder relations involves researching potential individuals and third-party organizations that may be relevant. List down the stakeholders who you think has a connection to the project. Stakeholders can be assessed systematically according to criteria such as influence, impact and alignment. For example, these questions can help assess their relevance: (Harrison, n.d) • To what extent will your strategy affect each group, positively or negatively? • How far does the strategy align with their existing beliefs about your organization’s values and purpose? • How far do they share your organization’s values and purpose in this
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