Stakeholder relationship management: Addessing the dilemmas of commercialised government
Faculty of Business and Public Management
School of Management
The paper reviews the application of stakeholder management principles within the strategy process of commercialised government. It also attempts to address the common dilemmas facing agency leaders in Australia, New Zealand and European social democracies— How to balance commercial imperatives with social responsibility? Contemporary notions of ‘stakeholders’ and 'stakeholding’ are examined along with recent studies of stakeholder management as an ‘ instrumental’ and ‘ normative’ or ‘ethical’ device. Principles of stakeholder relationship management derived from: the Berman et al(1999) study of 82 major corporations in the USA ; European case material; and the author’s consulting experience are then reviewed and captured in a conceptual model. The model is intended as a guide for agency director’s seeking to use stakeholder relationship management programs as both a positioning device to build reputation; and a means to achieve balanced financial, social and environmental outcomes.