Business – 1.5 Stakeholders – Business stakeholders | e-Consult
1.5 Stakeholders – Business stakeholders (1 questions)
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Answer:
Balancing diverse stakeholder interests requires a strategic approach that integrates social, economic, and ethical considerations:
- Stakeholder analysis: Identify the expectations of each group and assess the impact of potential decisions on them.
- Triple‑bottom‑line framework: Measure performance not only by profit but also by people (social) and planet (environmental) outcomes.
- Engagement and dialogue: Consult employees, customers, and community representatives through surveys, forums, or advisory panels.
- Integrated decision‑making: Use weighted criteria that reflect stakeholder priorities when evaluating strategic options.
- Transparent reporting: Publish sustainability reports that detail how decisions align with stakeholder interests.
Real‑world example – Unilever’s Sustainable Living Plan:
- Employees: Unilever invests in training and offers a living wage, improving morale and retention.
- Customers: The company develops products with reduced environmental impact, meeting growing consumer demand for ethical brands.
- Community: Initiatives such as clean‑water projects in developing regions demonstrate commitment to local welfare.
By aligning its strategic objectives with the Sustainable Living Plan, Unilever has achieved growth while enhancing stakeholder relationships, illustrating that profit and responsibility can be pursued simultaneously.