Despite their best efforts and desire to “do good”, firms are often primarily focused on financial returns and rarely give stakeholders a seat at the table. This is because firms often lack a genuine understanding of the values that diverse stakeholders can bring and the unique needs and interests they seek.
In this INSEAD Knowledge podcast, Lite Nartey, a Visiting Professor of Strategy at INSEAD, discusses how firms can identify key stakeholders based on their power and the legitimacy and urgency of their claims. She reveals the most effective ways to manage vast stakeholder networks and how to effectively engage with important players to create joint value.
As with any relationship, the way a firm communicates with a stakeholder is a crucial factor in determining whether the relationship will be positive or negative. Essentially, firms can enhance cooperation and reduce conflict by understanding the different elements of successful stakeholder communication.
Equally critical is the notion of joint value creation. The business environment today is characterised by different types of values – those sought by the firm as well as by different stakeholders – that need to come together for businesses to operate.