Stakeholder Analysis Primer

1
Stakeholder Analysis Primer

• Professor Doug Cerf
• Bren School of Environmental Science and
  Management
• Environmental Risk Management
• Winter 2008

2
Stakeholders vs. Stockholders

• Why is stakeholder analysis an issue for a course
  on risk management?
• understanding stakeholders is fundamental to
  evaluating a situation that involves
  environmental risk
• The purpose of the the firm Indonesia case is to
  evaluate a situation that has a large and diverse
  set of stakeholders

3
Stakeholder Analysis

• A normative approach to understand the
  environment (in the management sense) in
  preparation to do risk management
• Use this approach for each stakeholder

4
Stakeholder analysis model

• A description of the stakeholder including the
  names of the groups/people that makes up that
  stakeholder.
• Determine on a scale of one (weak) to five
  (strong) the relative strength of the stakeholder
  (ie in other words how much influence does the
  stakeholder have over the firm). Justify your
  ranking.

5
Stakeholder analysis model

• Determine on a scale of one (weak) to five
  (strong) the relative strength of the reciprocal
  relationship between the firm and the stakeholder
  (ie in other words how much influence does the
  firm have over the stakeholder). Justify your
  ranking.
• Determine on a scale of one (adversarial) to five
  (cooperative) the nature of the relationship
  between the stakeholder and the firm. Justify
  your ranking.

6
Stakeholder analysis model

• Identify the two most important issues to the
  firm regarding this stakeholder. If appropriate
  state the issues as questions.
• Briefly describe a strategy recommendation for
  the firm to deal with each stakeholder that you
  identify

7

• After we discuss the Freport case I will provide
  an example of stakeholder analysis for two
  stakeholders using this framework