Week 2 Economics, Governance and Business Ethics

Stakeholder

In a corporate context, a member of "groups without whose support the organization would cease to exist".

Internal Stakeholder

Employees, including staff at all levels like leadership, middle management, and frontline workers.

External Stakeholder

Customer, supplier, competitor, Government, NGO (Non Governmental Organization), Media, Activists, Global Institutions, Future Stakeholders?

Mendelow’s Matrix

A strategic management framework used to analyze and prioritize stakeholders based on two key dimensions: Power and Interest.

Power (Mendelow’s Matrix)

Refers to a stakeholder's ability to influence an organization’s decisions, actions, or outcomes. Examples include investors and regulators (high power) versus local community groups (low power).

Interest (Mendelow’s Matrix)

Indicates the level of concern or involvement a stakeholder has in the organization’s activities or outcomes. Examples include employees and customers (high interest) versus minor suppliers (low interest).

Key Players (Mendelow’s Matrix)

Stakeholders with high power and high interest; they are critical to the organization’s success and must be actively managed.

Keep Satisfied (Mendelow’s Matrix)

Stakeholders with high power but low interest; they require minimal attention, but their potential to influence should be monitored.

Keep Informed (Mendelow’s Matrix)

Stakeholders with low power but high interest; they care about the organization’s activities but lack the ability to influence outcomes, so information sharing is key.

Monitor (Mendelow’s Matrix)

Stakeholders with low power and low interest; they are neither highly influential nor deeply engaged and require minimal attention, but should be periodically monitored.