This chapter is from the book
This chapter is from the book
This chapter is from the book
FoE Stakeholders
This book is organized around the five major stakeholders of modern corporations. As a memory tool, we have listed them in Table 1.1 in a way that creates the acronym “SPICE.”
Table 1.1 The five major stakeholders of modern corporations
|
Stakeholder |
Definition |
|
Society |
Local and broader communities as well as governments and other societal institutions, especially non-governmental organizations (NGOs); we also include the environment as part of this stakeholder |
|
Partners |
Upstream partners such as suppliers, horizontal partners,and downstream partners such as retailers |
|
Investors |
Individual and institutional shareholders as well as lenders |
|
Customers |
Individual and organizational customers |
|
Employees |
Current, future, and past employees and their families |
As Figure 1.1 shows, each stakeholder is linked to all of the others. As in any good recipe, the individual ingredients come together to form something completely new; the whole is greater than the sum of the parts.
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Figure 1.1 The SPICE stakeholder model
Each of these relationships is an essential piece of the puzzle, and each must be managed in the following ways:
- There is a two-way flow of value between both parties to the relationship.
- The interests of all parties are aligned.
This is the essence of great management. It is what all corporations should strive for. It is the way to maximize the returns to society of all the investments that flow into every organization. It is the Firms of Endearment way.