Lecture Notes: Who Are Stakeholders and Why Do They Matter? - Non Profit News

Introduction

• Stakeholders: Individuals or entities who can affect or are affected by an organization.
• Importance of meaningful connection with stakeholders for sustainable mission fulfillment.

Understanding Stakeholders

• Definition: Stakeholders have a stake in the organization's work, including volunteers, donors, vendors, beneficiaries, partner organizations, and the community.
• Categories:
  • Internal Stakeholders: Work for or volunteer with the organization.
  • External Stakeholders: Government agencies, media.
  • Primary vs. Secondary: Directly or indirectly affected.

Importance of Stakeholders

• Effectiveness:
  • Requires a holistic approach beyond direct interactions.
  • Involves dealing with complex social issues across sectors and geographic boundaries.
  • Necessitates advocacy and understanding of varied perspectives.
• Accountability:
  • To whom are we accountable and what matters to them?
  • Vertical Accountability: Legal obligations and compliance.
  • Horizontal Accountability: Relational parity and reciprocity.
• Ethics:
  • Promotes equitable power dynamics.
  • Ensures those with less power have a meaningful voice.

Identifying and Assessing Stakeholders

• Case Study: Indiana CPA Society (INCPAS) stakeholder analysis.
  • Categories: Members, regulators, educators, students, employers.
  • Engagement: Strategy driven by understanding stakeholders.
  • Questions: Goals, expectations, and definitions of success.
• Matrix Map Tool:
  • Identifies direct and indirect beneficiaries.
  • Considers political and social factors.

Engaging Stakeholders

• Approach: Equity-driven interaction.
• Types of Relationships: Manipulation, consultation, partnership, citizen control.
• Considerations: Integration in decision-making, short- and long-term impacts, stakeholder metrics, adaptability.

Poor Stakeholder Analysis Practices

• Conventional Methods:
  • Two-by-two grid based on interest and power.
  • Exclusion of low power and interest stakeholders.
• Stakeholder Salience Model:
  • Classification by legitimacy, power, urgency.
  • Exclusionary mindsets limit opportunities and equity.

Systems Mapping

• Beyond Stakeholder Analysis:
  • Includes environmental and structural factors.
  • Systems mapping highlights interdependencies and complex flows.
• Benefits:
  • Promotes shared understanding and creative solutions.
  • Encourages inclusivity and future readiness.

Conclusion

• Stakeholder analysis is crucial for strategic focus and alignment.
• Systems mapping enhances the understanding of stakeholder interconnections.
• Inclusivity is essential for equity and considering future possibilities.