Stakeholder value for all

Stakeholder value for all

The values of stakeholding involve creating the maximum level of return for all stakeholders in a company. This is an entirely different and wide concept than most common shareholding values, which usually targets just on profit maximization. The stakeholder concept regarding its value still comes from profit and cash flow, but it also shows you the needs of other stakeholders, such as employees, the local community, customers, governments and suppliers. Thus, value regarding stakeholding match include the contributions on charity made by employees, funding local “green” projects, keeping a check on the resource use, or changing the employee benefits plan, even though it’s not mandatory from a competitive perspective. Increasingly, decision-makers in the industry are being faced with complex investment decisions created and made emotive by diverse stakeholder expectations. Investments with the potential to have an impact on a company’s environmental performance are a prime example of this since they are driven by multidimensional impacts, many of which are difficult to quantify in scientific and monetary terms.

Stakeholder Management Made Easy


This paper presents a stakeholder value analysis (SVA) model, which can be used to address such problems, using a multiple-attribute decision methodology.  The stakeholder value concept provides some usefulness when setting corporate strategy for the long-term support in a huge group that is ready to address them when the entity during those times when there is some financial crisis. It can further provide a better legislature and a competitive posture. Further, it can be helpful in creating a corporate branding that is positive. However, this doesn’t happen always, instead executive officers must get prepared as branding is so important and that too a rightful way. As positive thinkers do get evaluated more readily than other lazy members.

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Stakeholders Are Important

Positive thinkers approach situations well and stand up when there is a need for it. This decision tool has been developed and validated through a series of industrial applications, one of which is outlined here. This application describes the use of the tool in a company context whereby stakeholders from within the company are canvassed for their priorities and views. The SVA tool is used not only to guide and support this process but also to analyze the data and consequently produce output decision metrics, which express the preferences of all relevant stakeholders and which can, therefore, be more confidently used to support the final decision. 
Stakeholders have a great value in any company, as they are almost like a major instrument, representing your thoughts to other parts of the world and bringing potential customers.

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