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CHAPTER 2
MANAGING PUBLIC ISSUES AND
STAKEHOLDER RELATIONSHIPS
INTRODUCTION
Businesses today operate in an ever-changing external environment, where effective
management requires anticipating emerging public issues and engaging positively with a
wide range of stakeholders. Whether the issue is growing concerns about climate change,
health care, safety at work or in our schools, social equality, or consumer safety,
PREVIEW CASE
Business and Social Issues
CHAPTER OUTLINE
I. PUBLIC ISSUES
II. ENVIRONMENTAL ANALYSIS
Teaching Tip: Preview Case
Business leaders increasing engagement in emerging social and public
issues is a very controversial topic. This likely could evoke a good
discussion or debate among students in class. As new issues emerge,
students should present the various sides supporting or criticizing
Teaching Tip: Eight Strategic Radar Screens
The “eight strategic radar screens” is a useful tool for nearly any case.
The instructor may want to introduce a case from the end of the book,
before launching into a more elaborate analysis later in the semester
screens.
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A. Competitive Intelligence
B. Stakeholder Materiality
III. THE ISSUE MANAGEMENT PROCESS
A. Identify Issue
B. Analyze Issue
C. Generate Options
D. Take Action
E. Evaluate Results
IV. ORGANIZING FOR EFFECTIVE ISSUE MANAGEMENT
V. STAKEHOLDER ENGAGEMENT
A. Stages in the Business-Stakeholder Relationship
Teaching Tip: Stakeholder Materiality
This emerging notion comes out of corporate practice. Students may
be assigned to search for companies, other than Nestle, that use this
Teaching Tip: Issue Management Process
This is another opportunity where a current issue on campus, in the
local community, or on the national or international stage could be used
Teaching Tip: Stages in the Business-Stakeholder Relationship
The four stages provide an excellent comparison of business action
toward a stakeholder. Comparing the impact of these different actions
demands on us in our daily lives.
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B. Drivers of Stakeholder Engagement
o Goals
o Motivation
o Organizational Capacity
C. The Role of Social Media in Stakeholder Engagement
VI. STAKEHOLDER DIALOGUE
A. Stakeholder Networks
B. The Benefits of Engagement
GETTING STARTED
KEY LEARNING OBJECTIVES
LO 2-1: Identifying public issues and analyzing gaps between corporate
performance and stakeholder expectations.
LO 2-2: Applying available tools or techniques to scan an organization’s multiple
environments and assessing stakeholder materiality.
Teaching Tip: The Role of Social Media
Copyright © 2020 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the
prior written consent of McGraw-Hill Education.
stakeholder network
INTERNET RESOURCES
www.wn.com/publicissues World News, Public Issues
www.nifi.org National Issues Forum
www.un.org/en/globalissues United Nations, Global Issues
DISCUSSION CASE
BUSINESSES RESPOND TO THE MOVEMENT FOR SCHOOL SAFETY
Discussion Questions
1. What was the public issue facing the companies in this case?
Copyright © 2020 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the
prior written consent of McGraw-Hill Education.
5. In your opinion, did businesses respond appropriately to this issue? Why or why
not?
6. If you had been a manager of one of the airlines or banks discussed in the case,
what would you have decided to do (or not do) in the face of emerging public
concern about gun violence in schools?