This text is an extract adapted from the book “Directories creating value”, whose authors Pedro Vázquez and Alejandro Carreraare professors at the IAE Business School, heading the PwC Chair of Corporate Governance.
The Directories As they begin to more or less systematically take care of their key stakeholders, beyond shareholders, they tend to focus on other primary stakeholders. Those actors essential for the existence of the organization and who usually have formal and voluntary contractual relationships with the company, such as employees, clients, suppliers, banks, etc
There are other interest groups that, without formal contractual relationships or usual voluntary transactions with the organization, influence or can be significantly influenced by it. These are what we call secondary stakeholders, and on whom we will focus on this occasion.
The secondary stakeholders They can be quite heterogeneous in nature and have a relevance that depends on the organization in question. Although they are not as close to the day-to-day existence of the company as is the case with primary stakeholders, poor management of secondary stakeholders can put the organization at serious risk.
Secondary stakeholders include recognizable authorities with frequent interaction, such as State agencies, the tax authority, specific regulatory entities and union entities. In highly state-regulated economic environments, the directory must take care of maintaining effective and correct relationships with the public sector. In unstable socioeconomic situations, in critical moments of the organization that require certain considerable changes, and in those activities of greater labor conflict, it is also part of the role of the directory Ensure the relationship with key counterparts in the union sector and the labor portfolio.
Furthermore, among the secondary stakeholders the press and nearby communities are located. Public opinion and society in general, deposit the last endorsement to the company through what today has been called “the social license”, which is taking on an increasingly relevant role.
Finally, one must also consider the colleagues/competitors with whom one has the responsibility to ensure that the competition is honest and that the regulatory frameworks of the activity contribute to the common benefit. Chambers and business associations, among other intermediate institutions, are usually relevant actors in which the company must actively participate.
In addition to the distinction between primary and secondary stakeholders, the existence of a third is currently beginning to be postulated, which are the peripheral stakeholders. He directory faces significant challenges in monitoring and managing new types of stakeholders that have and will have a significant effect on organizational continuity. They have the particularity of having a type of link with the organization that is unique or different from the usual one. The existence of these peripheral stakeholders is highly influenced by technological advances, innovation in communication, and by recent significant global events. These stakeholders include a very heterogeneous and poorly customizable group such as the environment in general, non-human actors, illegitimate actors and “disinterested” actors.
Poor management of secondary stakeholders It can threaten the performance and even the existence of the organization. He directory It must ensure an effective relationship with each of these stakeholders, through very professional management by the management team. We recommend that the Directories be the ones who reflect, determine or validate a complete and appropriate stakeholder management process. Furthermore, we suggest that the directory Ensure that stakeholder management procedures are carried out appropriately and stay informed of any alarms arising from stakeholder monitoring.
Professor at the IAE Business School, and Alejandro Carrera, director of the PWC Chair of Government in Organizations at the IAE Business School, Universidad Austral.
Source: Ambito
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