Stakeholder engagement as communication design practice

Stakeholder engagement competence is here framed as an ongoing matter of communication design—that is, professionals and organizations of all sorts are challenged to invent forms of engagement with organizational stakeholders making communication possible that may otherwise be difficult, impossible, or unimagined. An original framework for articulating logics of communication design that addresses extant shortcomings in understanding stakeholder engagement competence is introduced. The framework draws into relief how communication for stakeholder engagement is conceptualized and valued by professionals and organizations. The communication design practice framework provides a path for opening up the black box of stakeholder engagement to advance communication competence in professional practice and organizational communication. The framework is illustrated by reconstructing, from current corporate social responsibility practice, two competing communication design logics for constructing dialogue and stakeholder engagement. One logic, grounded in the shared value framework, reprises a common theme about business that points to constructing communication to maintain the primacy of shareholders in stakeholder networks and to seek profitability in social, environmental, and economic problems. The other logic introduces an alternative communication design logic grounded in commitments to collaborative governance and open innovation. This logic is for stakeholder networks to generate and manage multiple values that address matters of social, cultural, environmental, and economic concerns. We then consider some key implications for engagement practice and competency for inventing forms of dialogue and stakeholder engagement to create value in the new globalized, mediated context. Communication design practice opens new ways of thinking about stakeholder engagement that has implications for cultivating professional practice and improving organizational decision‐making about investing in communication resources and infrastructure. Copyright © 2015 John Wiley & Sons, Ltd.     

Social networks and non‐market strategy

To date, the field of non‐market strategy has little to offer in the way of an integrated perspective on the simultaneous management of strategic issues and corporate stakeholders. This paper employs social network analysis to make a number of theoretically grounded conjectures about the delicate relationships between stakeholder behaviour and issue evolution. It is found that social network analysis has the potential to enrich and integrate theoretical perspectives in the field of non‐market strategy, offering solutions to a set of previously unresolved puzzles. Copyright © 2004 Henry Stewart Publications     

Communicating corporate social responsibility: an exploratory case study of a major UK retail centre

• Corporate 'social responsibility [CSR] is neither a fad nor an optional extra. The interest in it is reflective of a deeper change in the relationship between companies and their stakeholders. Healthy business requires a healthy community, and should be contributing to its creation and maintenance. The public increasingly wants to know about companies that stand behind the brands and products presented to them. And use their power to reward ‘good’ companies and punish the ‘bad’ ones. (Lewis, S. 2001 ).
• CSR is becoming ever more important in the modern business environment, as is evident by the fact that most leading public companies include a specific statement on their CSR policy within their annual reports. Indeed, changing societal expectations, increasingly intrusive media reporting, and ever more sophisticated and powerful pressure groups have caused all organizations to consider more carefully their wider social responsibilities not only out of altruistic reasons, but because of the need to consider the potential impact of their policies on their wider stakeholder relationships.
• It is argued in academic and professional writing that CSR orientated organizations benefit from a series of tangible and intangible benefits, when stakeholders are informed of their orientation. Corporations have reacted to these calls and this belief in a business case and are implementing CSR programmes or corporate change to bring about new corporate mindsets, and are in‐turn communicating the results of these programmes. However, in order to be able to effectively communicate it is necessary that organizations clearly understand the concept of CSR, both from a managerial perspective and homogeneous and individual stakeholder perspective.
• Aiming to help address this lack of understanding, the proposed paper provides a case examination of stakeholder and management perspectives of CSR in the North West of England in a retail setting. The study was conducted in 2003 around a Major UK retail centre using a mix method approach that drew out management cognate viewpoints on CSR and quantitatively tested these findings against stakeholder viewpoints on CSR. The study is served as a pilot for future studies into the area.
• It found that within the context of the case that the managers and stakeholders (when taken as one homogeneous group) shared a similar view of the concept of CSR. Additionally, the weaknesses of the research pilot brought to the surface methodological improvements that could impact on future researches into the area.

Copyright © 2006 John Wiley & Sons, Ltd.     

Public relations,passive aggression and critical social auditing: reflections on organisational inaction in stakeholder engagement

This article explores issues associated with organisational governance in the context of stakeholder engagement. It argues that both public relations (PR) research and practice have yet to address systematically the challenges inherent in this area, particularly how organisations exert power over stakeholders. Prompted by a consideration of the situational theory of power put forward by the sociologist Steven Lukes, it introduces the concept of passive aggression to PR practice. This is cited as an example of a wider phenomenon, which the author calls dark dialogue. The insights generated by these perspectives are used to highlight how theoretical approaches in the PR field that seek to understand and promote the role of dialogue in organisational‐stakeholder relations face an empirical challenge. This insight is then used to highlight the limitations of what has been traditionally termed as social auditing. It is suggested that PR and social auditing practice share the same blind spots when it comes to assessing how organisations exercise power and behave towards their stakeholders. The article goes on to advocate collaboration between PR professionals and academics to practically address these issues through a reconfigured social auditing process. It ends by suggesting that action research provides a methodological framework through which these theory‐practice interactions can be facilitated productively. Copyright © 2014 John Wiley & Sons, Ltd.     

Corporate governance on stakeholder issues: shareholder activism as a guiding force

Publicly traded corporations are under increasing amounts of pressure from society at large to redirect resources toward maximizing the value that accrues to non‐shareholding stakeholders of the organization. Building on the management and public relations literature, this study proposes a shareholder–stakeholder engagement model on corporate social responsibility (CSR)—the totality of corporate actions to meet societal norms and expectations. The study argues that shareholder activist–corporate engagements on CSR issues can enhance the corporation's sensitivity to stakeholder issues through improvements in the stakeholder governance mechanisms—institutions that safeguard stakeholder interests and maximize stakeholder welfare—within the corporations. Social shareholder activists, a special type of stakeholders, can be a viable source of pressure in influencing corporations to improve weaknesses in stakeholder governance mechanisms. Copyright © 2014 John Wiley & Sons, Ltd.     

The impact of online media on stakeholder engagement and the governance of corporations

Online tools such as social media provide new opportunities for citizens and stakeholder groups to be informed, identify common interests, express and share opinions and demands, organize, and coordinate interventions. Therefore, the Internet could be expected to increase stakeholder engagement in corporate affairs and facilitate good governance. In order to provide an overview of current findings on the impact of online media on governance and stakeholder engagement, we conduct a systematic literature review. Our analysis reveals five topical categories of inquiry. We analyze studies from the field of business participation and find a strong bias towards consumer engagement and marketing issues. Only few studies are found to critically explore the effect of online media on power and value distribution between corporations and stakeholders. We then turn to the more established field of political and civic participation in order to further analyze antecedents, forms, and outcomes of online engagement in civic affairs, and derive a framework for future research. Copyright © 2014 John Wiley & Sons, Ltd.     

External affairs and trusted family businesses: A research agenda

In the past two decades, the Journal of Public Affairs has solidified corporate public affairs as a legitimate leadership skillset vital to driving future business growth. Yet, more work at a persistently overlooked gap in the Journal, the intersection of public affairs and family businesses, might shed new light on thriving, trusted, and sustainable business practices. This paper examines the unique contributions of family businesses as trusted influencers. As one of the most prominent forms of business, worldwide, family businesses persistently enjoy unusually high levels of public trust while collectively employing millions of wage earners yet their contributions to corporate external affairs research ostensibly have been largely overlooked. These “silent” community and social influencers offer a potentially new perspective on effective public outreach given their persistent and unique trust advantage. Family business' trust-based capabilities can potentially bring new insights to understanding effective stakeholder engagement, credible communications, and issues management—the sweet spot of corporate public affairs functions. Future research opportunities based on relational- and locational- advantages of trusted family businesses are identified.     

Translation of trustworthiness signals into factors for stakeholder value cocreation

In this empirical paper, we contribute to this special issue on “The Marketing and Public Affairs of Sustainability” by addressing value creation, the raison d'être for the marketing scholarship, from a social sustainability perspective. Our evidence shows that during the interlinked practices of a focal organization and its external stakeholders, the practices from the former emit trustworthiness signals which translate into factors for stakeholder value for the latter, as precursor to stakeholder value cocreation or value destruction. Therefore, utility is not the result of an organization's decision-making and actions but rather, it is shaped by these interlinked practices, moderated by each stakeholder group's dynamic reference state. We believe that our explanatory model, by showing that trustworthiness and stakeholder engagement are endogenous to value creation, is consistent with the view of corporate sustainability as a persuasive and effective organizational management idea.     

Stakeholders in the political marketing context

Stakeholders influence the ability of organisations to achieve their aims, but little work has been carried out into understanding the stakeholder concept as applied to political actors. This paper first discusses the contextual nature of stakeholders using normative and strategic, and broad and narrow dimensions, integrating these 2 dimensions with power asymmetries and reciprocity. This paper then argues that a broad stakeholder concept for the political marketing context reconciles strategic and normative issues, as whilst successful interactions with specific stakeholders are necessary to achieve completed political exchanges of value, all stakeholders that exist in democratic societies have some form of moral claim to representation. As each political exchange of value consists of 3 consecutive interactions, the direct stakeholders in 1 interaction become indirect stakeholders in subsequent interactions. As each interaction occurs within a “marketplace” context, interactions in previous marketplace(s) together with expectations of the impact on future marketplace(s) influence current decision‐making. Finally, it is proposed that in the political marketing context, the stakeholder concept can be defined as “context‐specific agents that directly or indirectly influence or are influenced by the political actor.”     

Complexity in local stakeholder coordination: decentralization and community water management in Northern Ghana

Stakeholder coordination is a prominent theme in current development discourse. Experience with decentralization and community water management in northern Ghana highlights the complexities of coordinating stakeholders at the local level. In this case, roles and responsibilities must be clarified between legislated sub‐district structures on the one hand, and civic water groups on the other. This is especially important with regard to resolving which party should collect revenues and manage assets and expenditures in the water sector. The key mechanism for addressing these issues is the District Assembly, which is empowered under the decentralization law to coordinate stakeholders, both ‘horizontally’, across social actors, and ‘vertically’, between the national and sub‐district levels. While such local‐level dynamics are indeed complex and challenging, they are at the same time probably more amenable to at least medium‐term resolution than stakeholder competition issues at the national level. Copyright © 2002 John Wiley & Sons, Ltd.     

Diversity and constructive conflict in stakeholder dialogue: considerations for design and methods

Diversity is generally recognized as a key issue for learning in stakeholder dialogue on wicked sustainability issues. Yet the question on how design of stakeholder dialogue and supporting methods actually enhance learning in stakeholder dialogue deserves more attention. This paper presents constructive conflict as a central design issue for stakeholder dialogue. This means that a dialogue entails the articulation of a diversity of perspectives and the confrontation of claims and ideas based on these perspectives. Building on three properties of diversity (variety, balance and disparity), the methodological implications of constructive conflict as a central design issue will be derived. These implications are structured according to three design steps: stakeholder identification and selection, articulation of perspectives and confrontation of claims and ideas. It is argued that social scientific methods are needed to support design of stakeholder dialogue. Q methodology is presented as an example that was used in a stakeholder dialogue on sustainable biomass in the Netherlands to identify stakeholder perspectives, to select stakeholders and to structure the dialogue. The paper wraps up with conclusions on constructive conflict as a design issue.     

Stakeholder engagement for value-based banking: The case of Malaysian Islamic banks

This study explores the practices of stakeholder engagement (SE) in Malaysian Islamic banks. In 2017, Bank Negara Malaysia (BNM) introduced the Value-Based Intermediation (VBI) framework, with the aim of promoting a more sustainable and responsible banking system in the country. Among others, the VBI framework requires Islamic banks to adopt a stakeholder-driven approach to their business operations, which involves understanding and responding to the needs and expectations of their stakeholders. Within this context, we apply a content analysis of the annual and sustainability reports of all stand-alone Islamic banks in Malaysia to document the changes in the banks' quality of SE after the introduction of the VBI. The content analysis is guided by a new index that we construct, termed as the Stakeholder Engagement Quality Index (SEQI), which covers four dimensions of SE process: the purpose, stakeholder mapping, scope and approach to the engagement. Our results indicate that the SE quality significantly increases overall and for the third (i.e., scope of SE) and fourth (i.e., SE approach) dimensions subsequent to the VBI. Additionally, in terms of bank types, we find that the SEQI score is higher for commercial Islamic banks than development Islamic banks in the post-VBI period. Despite such improvements, our study alerts policymakers that there are areas that need further attention. Among others, these include integrating SE into the banks' internal managerial functions and encouraging active stakeholder participation in the design and implementation of the engagement itself.     

Integrating public affairs information strategy with organizational practices in healthcare delivery organizations

To develop and implement policy, lawmakers rely on the input from external experts and stakeholders. Public affairs professionals are responsible for monitoring the sociopolitical environment and responding to public policy proposals on behalf of firms and organizations. However, how public affairs operate intraorganizationally and develop information strategies is not clear nor consistent in the literature. The purpose was to explore how public affairs engage with internal stakeholders to leverage their knowledge for information strategies in responding to policymakers. Knowledge transfer served as a theoretical framework through a qualitative multiple case study of 3 not-for-profit healthcare delivery organizations. Primary data were collected using semistructured interviews from public affairs (n = 11) and healthcare professionals (n = 18) along with a review of organizational documents and public records. Patterns and themes emerged through cross-case synthesis, presented as a process-based model and theory. Public affairs structures and decision-making processes varied across cases indicating no coherent approach by practitioners. Intraorganizational engagement and knowledge transfer processes were managed both consistently and ad hoc, through informal and formal methods. Practitioner strategies and tactics were identified to facilitate internal interaction such as filtering policy issues and effective communication methods. Common institutional barriers were identified that made stakeholder engagement a challenge. This study provides insight into understanding how public affairs practice internally and supports the fundamental importance of linking knowledge into public policymaking.     

Multi-stakeholder public policy and governance in China: an analysis

In this article, public policy is put into a multi-stakeholder rather than adversarial perspective: we argue that there is a role for multi-stakeholder involvement in both the development and implementation of public policy; these are separate processes that can involve different patterns of stakeholder involvement (stakeholders have different skills and levels of interest in public policy) in either one or both the development and implementation phases. We need new models, approaches and examples of such multi-stakeholder public policy, and in this Special Issue, we focus on China, where such research is only slowly emerging. We present and analyse six papers that fall naturally into three categories: (1) corporate social responsiveness and societal relationships; (2) public affairs (particularly reputation management) and citizen involvement; and (3) public-management-oriented, data-based analyses. These articles, taken together, increase our understanding of multi-stakeholder research and practice, but equally as important, they give us insights into how Chinese public policy academics research and report public policy. This window into academic research and thinking offers us an opportunity to expand and deepen our understanding of public policy and its implications for public affairs in China. Copyright © 2014 John Wiley & Sons, Ltd.     

Political exchanges of value and the stakeholder concept: Implications for public affairs

The political marketing exchange is triadic in structure, as promises given by political actors in the context of an election campaign can only be reciprocated if 1. the political actor is selected, 2. has influence over legislation negotiations, and 3. is in a position to deliver on these promises. In each of these three ‘interaction marketplaces’, political actors are indirectly influenced by stakeholders. These ‘indirect stakeholders’ are often public affairs practitioners engaged in lobbying activities in the political sphere. This paper integrates the triadic interaction model of political marketing exchange with the political marketing stakeholder concept and highlights how public affairs practitioners can target their efforts for maximum benefit. This aim is motivated by a need to increase our understanding of how political marketing theory can help political actors and their stakeholders to optimise the resources that are used on marketing activities across the electoral cycle.     

Understanding the changing role of public sector performance measurement in less developed countries

This article develops a framework for understanding changes in the demand for and supply of performance information in public sector organizations in less developed countries (LDCs). New Institutional Sociology (NIS) is used to argue that pressures from specific stakeholders stimulate organizations to produce particular performance information. The article distinguishes three groups of stakeholders (i.e. funding bodies, statutory boards and purchasers), and elaborates on the performance dimensions these stakeholders are interested in. The group of funding bodies, with their interest in financial performance information, used to be the most important group of stakeholders. However, statutory boards and purchasers are gaining importance as a result of recent public sector reforms, which include decentralization, marketization and the implementation of anti‐corruption programs. As a consequence of pressures coming from these stakeholders, new performance dimensions, such as the quality and quantity of services and the political governance structure, will be added to organizations' performance measurement (PM) systems. Whether these and other—often more traditional financial—performance dimensions will be balanced and integrated throughout organizations depends on the power positions of the various stakeholders. The arguments presented in this article intend to stimulate public sector organizations in LDCs to design and redesign PM systems as a response to changing stakeholder interests. Copyright © 2010 John Wiley & Sons, Ltd.     

Reforming Social Services in Hong Kong: The Role of Contracting and Performance Management in the Non‐Profit Sector

Contracts and performance management, along with the concept of consumerism, have become the fundamental metaphors for New Public Management (NPM) and key changes in the public service. ‘Doing well while doing good’ and finding generally acceptable accountability measures for social services have become the perennial aspirations of planners, service providers and funders. This article examines the contingent factors and rationales behind the quality movement and recontracting exercise in reforming the delivery of personal social service programs in Hong Kong within the framework of New Public Management (NPM). It explains the use of long‐term relational contracts rather than the standard business contracts between the government as funder and non‐profit organisations as service providers. It also deals with the complex relationships among quality issues, quality standards, consumerism, accountability, performance indicators, and performance management.     

Exploring How Institutional Arrangements Shape Stakeholder Influence on Policy Decisions: A Comparative Analysis in the Energy Sector

In recent years, there has been an expansion of efforts to include stakeholders in administrative policy making. Despite significant potential to improve policy decisions, empirical evidence suggests that not all participatory processes provide meaningful opportunities for stakeholders to shape policy and may even give the most powerful stakeholder groups disproportionate influence over policy decisions. This article argues that the institutional arrangements for stakeholder engagement—the rules and norms that determine which stakeholders can participate and how—affect stakeholders’ influence on policy decisions. This article uses state energy efficiency policy making as a context in which to compare how different institutional arrangements shape the ways in which stakeholders engage in and influence the policy process across two states, Connecticut and Maryland. Findings highlight that institutional arrangements can be used to increase participation, mitigate undue influence of industrial stakeholders, and increase the influence of public interest stakeholder organizations.     

Stakeholder governance of organ transplantation: A desirable model for inducing evidence-based medicine?

Medical governance should secure and apply appropriate expertise, accommodate stakeholder interests, and promote social values. The most common form of governance, public (agency) rulemaking by government agencies, usually involves supplementing in-house expertise through advisory committees. An alternative, private (stakeholder) rulemaking, involves delegating the authority for developing rules directly to stakeholders, who often command relevant expertise, including that arising out of tacit knowledge. The possible advantages and disadvantages of agency and stakeholder rulemaking in medical governance can be assessed both from what we know about these forms in general and from experience with a prominent example of stakeholder rulemaking; that is, governance of the US organ transplantation system. It appears that this governance has been exceptionally successful in promoting evidence-based medicine. The stakeholder role in the governance of transplantation could be replicated in other areas by creating meaningful stakes to engage stakeholders and by increasing isolation from legislative politics through an independent funding source and circumscribed oversight.