Chapter

Values-Based Stakeholder Management: Concepts and Methods

Authors:
  • University of Applied Sciences for Media, Communication and Management
  • ESCP Europe Berlin
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Abstract

Stakeholders have acquired an active and even pivotal role in strategic management decisions and collaboration formats due to ongoing substantial changes in the corporate world, impacting established management frameworks, concepts and methods. This chapter discusses some of these fundamental changes and demonstrates the impact of (missing) stakeholder engagement for the success of a strategy process. Based on the difference between interests and values a values-based reframing of the stakeholder concept and corresponding management methods is suggested and illustrated with exemplary cases. To support a values-based approach to stakeholder management, new conceptual distinctions and methodical implications are presented. Three forms of stakeholder management are proposed (defensive, integrative, overarching). Furthermore, this chapter shows how to clarify and develop stakeholder values (e.g. by means of ongoing values conversations) and exemplifies how to reframe and adapt methods of stakeholder analysis and management (e.g. as an element of values-based business modelling). A values-based approach to strategic stakeholder management ensures that the course of strategic decisions is not only determined by short-lived attitudes, interests and the best deal negotiators may get, but that it is driven by long-term objectives of diverse participants.

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... (ebd., S. 221) Dementsprechend plädieren Hart und Sharma (2004) für neue Wege der Übernahme von Verantwortung und Einbeziehung von Randakteuren bzw. "fringe stakeholders" (arm, schwach, isoliert oder abgelegen, nicht-legitimiert und nicht-menschlich) bei der Suche nach Lösungen für soziale und ökologische Probleme (Breuer & Lüdeke-Freund, 2019 for the company. The value is useful for the company if it helps the company to achieve its purpose. ...
... (ebd., S. 221) Dementsprechend plädierenHart und Sharma (2004) für neue Wege der Übernahme von Verantwortung und Einbeziehung von Randakteuren bzw. "fringe stakeholders" (arm, schwach, isoliert oder abgelegen, nicht-legitimiert und nicht-menschlich) bei der Suche nach Lösungen für soziale und ökologische Probleme(Breuer & Lüdeke-Freund, 2019). So kann eine ausgeweitete Stakeholder-Betrachtung beispielsweise vermeiden, dass Schadschöpfungen als Externalitäten vernachlässigt werden, weil Systemzusammenhänge nicht erkannt oder ignoriert werden.denster ...
Thesis
Die vorliegende Arbeit hat das Ziel, die Bedeutung von Nachhaltigkeit in einem strategischen Kontext zu erörtern und einen Bezugsrahmen zu schaffen, der es ermöglicht, Nachhaltigkeit für Strategiearbeit zu erschließen. Zu diesem Zweck wird zunächst eine Problemdiagnose gestellt, indem die Diffusität des Nachhaltigkeitsbegriffs aufgezeigt wird. Um diese Diffusität aufzulösen, wird daraufhin eine konzeptionelle Rahmung von Nachhaltigkeit vorgenommen, die es ermög-licht, anschließend Zusammenhänge von Nachhaltigkeit und Strategie zu erörtern und einen Bezugsrahmen zu entwickeln, der anhand zentraler strategischer Denkfiguren Nachhaltigkeit für Strategiearbeit erschließbar macht. Abschließend gibt die Arbeit einen Eindruck davon, wie durch diesen Bezugsrahmen orientierte Strategiearbeit aussehen kann und welche Fallstricke und Möglichkeitsräume sich bieten. Diese Arbeit bietet so durch Identifikation und In-Beziehung-Setzen zentraler Konzepte und Denkfiguren Orientierung für Strategiearbeit im Kontext von Nachhaltigkeit und kann eine Hilfestellung bei der Erschließung des diffusen Nachhaltigkeitsbegriffs bieten.
... Shared values among stakeholders establish a common ground for collaboration or cooperation. Looking through the prism of stakeholder theory, which has played a pivotal role in discourses on corporate sustainability in the past two decades (Freeman & McVea, 2001;Parmar et al., 2010), the values-based cooperation is seen as a prerequisite for effective sustainability management (Hörisch et al., 2014, 341;Breuer & Lüdeke-Freund 2019). ...
... Prior research has shown that values can provide a solid foundation for initiating and strengthening collaboration, cooperation and co-creation among diverse stakeholders. Values that are shared among stakeholders or that can be related in the context of overarching values within the stakeholders' "ordered systems of priorities", as which values have been defined in social psychology (Schwartz, 2012), help to establish a common ground for aligning efforts and pursuing shared goals (Breuer & Lüdeke-Freund, 2019). Moreover, since values underlie both personal and organizational identities (Hitlin & Piliavin, 2004, Ravasi & Schultz 2006, their potentials can be harnessed to trigger and enhance collaborative value creation and capture for sustainability (Oksam et al., 2020). ...
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Human values of different stakeholders have been recognized to drive and positively affect innovation efforts. However, too little is known how values-based innovation can be facilitated, which barriers emerge and which challenges persist to turn stakeholder values into action. We need to understand how to establish resilient innovation cultures that reliably create economic, social and environmental benefits. The paper introduces the terminology, theoretical foundations and research design of the European IMPACT project to address these research gaps, and discusses implications for teaching and coaching. It introduces a values-based innovation maturity model and present results from an integrative literature analysis. Results include a comprehensive overview of the values, barriers, and good practices and methods to create values-based innovation cultures. Initial insights show how to facilitate the creation of values-based innovation cultures with a positive impact on societal challenges.
... (IJIM, 2019) We see how more systematic approaches (frames, lenses, constructs, and research agendas) are relevant for exploring both the single firm and network characteristics and mechanism of Values-driven innovation/processes that are much needed. If values are already "difficult to grasp" (Lorr et al., 1973;Pedersen et al., 2018;Schwartz, 2012) and we know "that the best point of sustainable innovation departure is within networks built on shared goals" (Breuer and Lüdeke-Freund, 2019), then our research agenda to substantiate VBIM research with advanced methods for network innovation analysis is justified. If SDGs must/may be leveraged for Sustainable innovation, then advanced methods to investigate the potential of values as "sources, levers, and orientation marks for sustainable innovation" is a profitable enterprise (Breuer and Lüdeke-Freund, 2017d). ...
... SDGs can guide firms' innovation processes towards providing sustainable solutions to tackling complex and interlinked societal challenges on multiple levels; local, regional, and global (Farrell, 2020). Values and more recently, SDGs are available levers and sources to innovatively create a shared future is gaining attention in recent research agenda (B lab, 2020;Walker et al., 2019;Breuer and Lüdeke-Freund, 2019) Achieving sustainable development of the natural environment, human society, and economy is a seemingly complex and unsolvable problem but necessary. So our paper argues that a better understanding of "innovation in Networks "is crucial for discovering these new potentials of SDGs as Values-Based innovation and collaboration levers in and across companies. ...
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Understanding when entrants might have an advantage over an industry's incumbent firms in developing and adopting new technologies is a question which several scholars have explained in terms of technological capabilities or organizational dynamics. This paper proposes that the value network—the context within which a firm competes and solves customers' problems—is an important factor affecting whether incumbent or entrant firms will most successfully innovate. In a study of technology development in the disk drive industry, the authors found that incumbents led the industry in developing and adopting new technologies of every sort identified by earlier scholars —at component and architectural levels; competency-enhancing and competency-destroying; incremental and radical—as long as the technology addressed customers' needs within the value network in which the incumbents competed. Entrants led in developing and adopting technologies which addressed user needs in different, emerging value networks. It is in these innovations, which disrupted established trajectories of technological progress in established markets, that attackers proved to have an advantage. The rate of improvement in product performance which technologists provide may exceed the rate of improvement demanded in established markets. This mismatch between trajectories enables firms entering emerging value networks subsequently to attack the industry's established markets as well.
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In today's fast-changing competitive environment, strategy is no longer a matter of positioning a fixed set of activities along that old industrial model, the value chain. Successful companies increasingly do not just add value, they reinvent it. The key strategic task is to reconfigure roles and relationships among a constellation of actors--suppliers, partners, customers--in order to mobilize the creation of value by new combinations of players. What is so different about this new logic of value? It breaks down the distinction between products and services and combines them into activity-based "offerings" from which customers can create value for themselves. But as potential offerings grow more complex, so do the relationships necessary to create them. As a result, a company's strategic task becomes the ongoing reconfiguration and integration of its competencies and customers. The authors provide three illustrations of these new rules of strategy. IKEA has blossomed into the world's largest retailer of home furnishings by redefining the relationships and organizational practices of the furniture business. Danish pharmacies and their national association have used the opportunity of health care reform to reconfigure their relationships with customers, doctors, hospitals, drug manufacturers, and with Danish and international health organizations to enlarge their role, competencies, and profits. French public-service concessionaires have mastered the art of conducting a creative dialogue between their customers--local governments in France and around the world--and a perpetually expanding set of infrastructure competencies.
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Lou Gerstner's was a hard act to follow. As CEO in what were arguably IBM's darkest hours, Gerstner brought the company back from the brink. After nearly ten wrenching years, in which the big-machine manufacturer remade itself into a comprehensive software, hardware, and services provider, business was looking good. So the challenge for Sam Palmisano, when he took over as CEO in 2002, was to come up with a mandate for a second act in the company's transformation. His primary aim was to get different parts of the company working together so IBM could offer customers "integrated solutions"--hardware, software, services, and financing--at a single price. As part of this effort, he asked all of IBM's 320,000 employees, in 170 countries, to weigh in on a new set of shared corporate values. Over a 72-hour period, thousands of IBMers throughout the world gave Palmisano and his executive team an earful in an intranet discussion dubbed "Values-Jam," an often-heated debate about the company's heart and soul. Twenty-four hours into the exercise, at least one senior exec wanted to pull the plug. The jam had clearly struck a chord with employees, but it was a dissonant one, full of rancor and discontent. Palmisano let the discussion continue, and the next day, the mood began to shift. The criticism became more constructive. Out of the million words generated by the jam grew a set of values that, as Palmisano explains in this interview, are meant to guide the operational decisions made by IBM's employees-and, more important, to serve as Palmisano's mandate to continue the reinvention of the company.
Bridging the values gap
  • R E Freeman
  • E R Auster
  • RE Freeman
Freeman, R.E. and Auster, E.R. (2015). Bridging the Values Gap. Berrett Koehler Publishers: Oakland, CA.