POST-COVID-19 – TIME TO WIDEN STAKEHOLDER AMBITIONS

The wellbeing of staff has to be a priority for senior executives. In the wake of the coronavirus (COVID-19) pandemic, managers are being forced to re-evaluate and, in effect, increase the scope and definition of groups they might normally consider to be vital stakeholders.

Because organisations are social structures, they have a duty of care that extends beyond just shareholders, and which should identify and resolve all key stakeholder challenges. Failure to recognise select stakeholder needs will limit a company’s competitiveness and its ability to achieve its wider strategic objectives.

In short, organisations with robust, reliable and both national and internationally-strong relationships are better prepared to meet key stakeholder demands.

Today, the term ‘stakeholder’ should be used in a much broader sense than we have previously been used to. In order for businesses to flourish and service all of their audiences, incorporating stakeholder metrics in the form of key performance indicators (KPIs) has rapidly become a necessity. Additionally, firms can utilise public and social networks to communicate with their stakeholders and, in the process, gather real-time and predictive data about their demands and expectations to build successful and productive relationships with them.

To further create stakeholder confidence, senior executives must also exhibit honesty, impartiality and an open approach in day-to-day communications. This may be accomplished by moving away from typical agency perspectives that prioritise the interests of shareholders alone, toward a common practice which embraces comprehensive stakeholder perspectives.

Jan-Mar 2022 Issue

Henley Business School