Learning Objectives. That participants. Cattouse Ctt and Gestsson A Leadership Program for UNU FTP and CRFM

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1 Cattouse Ctt and Gestsson A Leadership Program for UNU FTP and CRFM That participants Learning Objectives can explain their views on the importance of Corporate Social Responsibility for for profit companies can present the moral obligations of their institution to its various stakeholder groups are able to state the importance of each of their institution s key and primary stakeholder groups can apply the technique of the influence/importance matrix to their institution s stakeholder analysis 2 Definitions of CSR CSR is about how companies manage the business processes to produce an overall positive impact on society "Corporate Social Responsibility is the continuing commitment by business to behave bh ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large" The World Business Council for Sustainable Development in its publication "Making Good Business Sense" by Lord Holme and Richard Watts 1

2 Corporate Moral Responsibility The common way of thinking about CSR emphasizes the moral obligations of the institution toward various stakeholders Thus CSR becomes CMR?Is there an Institutional CMR??Which stakeholders? Source: Carroll (1991) Philanthropic Responsibilities Ethical Responsibilities Legal Responsibilities Economic Responsibilities Responsibility The responsibility of an institution for the totality of its impact is to primary stakeholders other stakeholders culture and society those affected by externalities the public sector government(s) NGOs ecosystem the Globe! Who are the Stakeholders Any individual, community, group or organization with an interest in the outcome of a program, or a project, either as a result of being affected by it positively or negatively, or by being able to influence the activity ii in a positive ii or negative way A stakeholder analysis is a technique to identify and assess the importance of key people, groups of people or institutions that may significantly influence the success of an activity or project 2

3 Who are our Stakeholders Stakeholder: Any group or individual with the power to help, hinder or otherwise influence our work Who are the different groups? Stakeholder Identification What power and influence do they have? What do they need or want from us? What can they contribute to our efforts? What more do we need to know about them? 7 Degree of Stakeholder Support Degree of Support High Low Core Actors: Supporters: Uncommitted: Bystanders: Opponents: Their involvement is key Who do not control your job Who could become either supporters or opponents Groups which tolerate your work, but who will expect concessions and benefits from it Groups which will act to block your activities 8 Managing Stakeholders Stakeholders conferences can be conducted to include large groups of internal and external stakeholders to discuss driving forces, governing ideas and strategic initiatives Forums and focus groups held by the various groups or task forces to gain new information and test new ideas 9 3

4 A Stakeholder Map Mass media Pressure groups Payers Employees Local communities Policy makers Clients Political parties Institution Private sector Professionals Governments Special interest Groups NGOs Suppliers International Organizations Stakeholder Analysis Identification of all stakeholders involved stakeholders which may be affected by the problem or the project are identified Categorization of the stakeholders all relevant stakeholders are categorized according to criteria relevant for the specific project (active, beneficiaries, affected, supporters, opponents) Detailed analysis of selected stakeholders more detailed analysis of selected stakeholders (characteristics, relations, interest, power) Stakeholder Analysis for Post Harvest Losses 4

5 The Categorization Key stakeholders Those who can significantly influence or are important to the success of an activity Primary stakeholders Those individuals and groups who are ultimately affected by an activity, either as beneficiaries (positively impacted) or disbeneficiaries (adversely impacted) Secondary stakeholders All other individuals or institutions with a stake, interest or intermediary role in the activity Post Harvest Losses 5

6 Stakeholder and basic characteristics The Characteristics Interests and how affected by the problem(s) Fishers: People who earn their living by Maintain and improve their operating and/or owning fishing means of livelihood, PHL are vessels to harvest marine and affecting their income and inland fish resources, or therefore possible future cultivated inland fish. Low- or benefits. middle-income earners, small or middle scale family businesses, women actively involved in fish process Boat owners: People who own fishing vessels and operate in the fishery industry, or rent out their vessels. Stakeholder Analysis Matrix Post Harvest Losses PHL are having direct impact on their income. Capacity and motivation to bring out change High interest of minimizing PHL. Weak capacity to bi bring about change. Highly interested in reducing PHL Lack of financial and technical capacity to bring about significant changes. Possible actions to address stakeholder interests Implementing better sanitary practices on board vessels. Shortening fishing trips. Increased use of clean ice. Introducing the use of insulated boxes/containers for fish. Influence boat designers to improve design, reinvest in more suitable vessels, control the length of fishing trips, introduce better onboard fish handling, raise awareness on fish quality and address ways to lengthen shelf life of fresh fish that could in Importance and Influence The Matrix Importance / Influence Matrix High Importance / High Importance / Low Influence High Influence A Shows stakeholders of high importance to the activity, but with low influence. They require special initiatives if their interests are to be met C Shows stakeholders who are of low priority but may need limited monitoring They are unlikely to be the focus of the activity B Shows stakeholders of high importance to the activity who can also significantly influence its success. Managers will need to develop good working relationship with these stakeholders to ensure an effective coalition of support for the activity Low Importance / Low Importance / Low Influence High influence D Shows stakeholders with high influence, who can affect outcome of the activity, but whose interest are not the target of the activity These stakeholders may be able to block the activity and therefore could constitute a killer risk 6

7 The Main Stakeholders Those included in Boxes A, B and D are the main stakeholders in the activity They can significantly influence it or are the most important stakeholders if the activities/objectives are to be met Stakeholders in box C are of low priority but may need limited monitoring Key Stakeholders 1. Fishers 2. Boat owners 3. Aquaculture producers 4. Government Primary Stakeholders 5. Community based organizations 6. Fish markets kt retail til outlets 7. Fish exporters 8. Ice suppliers Secondary Stakeholders 9. Boat/ship builders and designers 10. Harbor management 11. Private service business 12. Fish buyers Post Harvest Losses Summary Although Corporate Social Responsibility deals with the responsibilities of the for profit corporations Corporate Moral Responsibility is a useful tool in the institutional leaders toolbox Stakeholders analysis and mapping is a necessary part of the institution s i i strategic process and a part of its project management Stakeholders can be categorized according to their importance and influence and into key, primary and secondary stakeholders The shortcomings of stakeholder theory is the dissimilarity inside the stakeholder group 21 7

8 References Heath, J. and Norman, W. (2004), Stakeholder theory, corporate governance and public management: what can the history of state run enterprises teach us in the Post Enron era? Journal of Business Ethics, Vol. 53, pp Svensson G. (2007). Sustainable Leadership ethics: a continuous and iterative process. Leadership & Organization. Vol.28 UNESCO Bangkok, Social & Human Sciences, Programs and Activities: s_and_activities 22 8