Stakeholder Mapping, ISO 26000, and Corporate Social Responsibility
What is a Stakeholder Map?
A stakeholder map is a visual representation of a stakeholder analysis. It is a procedure to take into account the different organizations or people involved in the company on a routine basis as part of the operational procedures of the organization. It organizes stakeholders according to the key criteria with which you will be managing them during a project. The map helps executives see how stakeholder resemblance is presumably possible to form and what outcomes are likely to happen.
Stakeholder Mapping: Freeman vs. Friedman
Milton Friedman only considered the relationship between the firm and the owners. However, R. Edward Freeman argued that everything counts. For example, suppliers have to cooperate with the firm. It is difficult to maintain this environment between all the parties involved.
A firm has relationships with various stakeholders, including:
- Owners
- Financial Community
- Activist Groups
- Customers
- Customer Advocate Groups
- Unions
- Employees
- Trade Associations
- Competitors
- Suppliers
- Government
- Political Groups
The company must be able to specifically identify who its stakeholders are and their stakes (the interests of each stakeholder). This is known as multidimensionality.
We need corporate stakeholder responsibility. If we have that, there is no conflict between shareholders and stakeholders.
Is ISO Certification Mandatory?
No, ISO procedures are voluntary. Certification does help in maintaining many legal requirements that companies face to ensure quality, but the standard itself is not required.
Benefits of ISO 26000 Certification
ISO 26000 was created to help organizations of all kinds to be more socially responsible. This international standard aims to advise organizations and promote sustainable development.
Key benefits include:
- Competitive Advantage: It contributes to brand loyalty and attracts more customers.
- Reputation: Implementing ISO 26000 helps build a good reputation, strengthening relationships with investors, stakeholders, clients, etc.
- Employee Morale: High employee morale contributes to productivity, professional development, and group cohesion.
From my point of view, the most important benefits of ISO 26000 are the improved image of the organization. In the eyes of the community, it would be an organization that contributes to society, respects human rights, and respects the law. All of this contributes to a better reputation and image. It also makes the company more competitive on a social level. Having an attractive image allows us to attract more staff and collaborate with governments on different issues. This also helps retain clients and stakeholders.
What do Philip Morris and Volkswagen Have in Common?
Both Philip Morris and Volkswagen engaged in immoral acts that harmed society. Philip Morris sold a product that, in the long term, harmed society, despite knowing this. Volkswagen modified its vehicles to pass contamination tests and then sold customers a product different from what was advertised. Both companies prioritized maximizing profits over ethical considerations, resulting in negative publicity and damage to their image.
Utilitarianism vs. Kant’s Categorical Imperative
The categorical imperative differs from utilitarian theories. Utilitarians believe there are only two options with varying levels of positive and negative consequences, and you choose based on priority. The categorical imperative bases actions on principles, believing these principles are justified.
Hypothetical Imperative vs. Categorical Imperative
Categorical imperatives specify actions we must take regardless of whether doing so would allow us to get what we want. An example is “Keep your promises.” Hypothetical imperatives identify actions we must take, but only if we have a particular goal.
Culture According to Hofstede
- Individualism/Collectivism: High value on individual achievement and self-interest vs. avoidance of confrontations and disagreement.
- Power Distance: Power inequality between superiors and subordinates.
- Uncertainty Avoidance: How members of society respond to uncertainty or ambiguity.
- Masculinity/Femininity: Discrimination (culture, religion, etc.).
Common Problems in Global Supply Chains
- Corruption
- Child Labor
- Different Organizational Cultures and Regulatory Changes
- Cyber Threats
- Rapid Speed of Disruptive Innovations
- Volatility in Global Financial Markets
IKEA and its Global Supply Chain
Why Should IKEA be Concerned with its Global Supply Chain?
There are several reasons why companies like IKEA should be concerned with their global supply chains:
- Many jobs are affected by the company’s activities.
- Stakeholders respond positively when the company uses a CSR base and negatively when it does not.
- Companies can gain a competitive advantage by improving relationships with suppliers.
IKEA’s Implementation of CSR and Governance
IKEA has reached out to its suppliers and other agents to achieve company standards. Initially, IKEA demanded a lot without providing support. Now, the company demands tighter standards while offering help through knowledge, finances, and audits. Governance refers to the help a global company provides to its supply chain partners to achieve standards without gaining ownership.
IKEA’s Strategy: From Trading to Purchasing
IKEA’s strategy involves building long-term relationships with partners who sell capacities by reducing those that IKEA is already using. It involves investing in aid to suppliers, intermediaries, or any involved agent. IKEA aims to reduce the number of agents, select the best, and build lasting relationships. IKEA demands high standards but provides knowledge and support. This creates a beneficial relationship for both parties and a high-level distribution chain.
IKEA’s IWAY Initiative
Implemented in 2000, IWAY is a small group headed by the IKEA Group President. It defines what suppliers can expect from IKEA and what IKEA requires from its suppliers regarding working conditions, child labor, the environment, and forestry management. While IWAY is a good idea, it can be risky for small companies that must change their activities to comply. However, it allows IKEA to monitor supplier activities and gain more negotiating power. One improvement could be to give more credit to the smaller companies involved.
Organizational Embeddedness: The Most Important Mechanism
In my opinion, the most important mechanism for IKEA is the knowledge-enhancing mechanism. It focuses on workers, who are crucial to a company’s success. Properly trained employees are essential for building customer relationships and optimizing work, especially for long-term strategies. This mechanism helps identify the best strategies and ensures employees are equipped to implement them without damaging the company’s image.
The Sustainable Development Goals (SDGs)
The Sustainable Development Goals were adopted by all UN Member States in 2015 as a universal call to action to end poverty, protect the planet, and ensure that all people enjoy peace and prosperity by 2030.
The 17 SDGs are:
- No Poverty
- Zero Hunger
- Good Health and Well-being
- Quality Education
- Gender Equality
- Clean Water and Sanitation
- Affordable and Clean Energy
- Decent Work and Economic Growth
- Industry, Innovation, and Infrastructure
- Reducing Inequality
- Sustainable Cities and Communities
- Responsible Consumption and Production
- Climate Action
- Life Below Water
- Life On Land
- Peace, Justice, and Strong Institutions
- Partnerships for the Goals