Sustainability Using the Stakeholders Theory

In the 1990s, the term ‘triple bottom line’, abbreviated as TBL or 3BL, also known as ‘People, Planet, Profit’, became a popular formula for sustainability,

The most sustainable way to run a business is to make decisions in the interest of all stakeholders. The stakeholder relationship is a healthy relationship only when there is a pay-off for all parties. When any party within the stakeholder network receives little or nothing, the relationship will be weakened, and eventually severed by the withdrawal of the weaker partner.

Who determines, and to what extent, the success of the organization?

HOW TO USE THE MODEL:

The stakeholder approach is particularly useful in understanding complexity because it sees organizations as made up of different functional, internal, external or process components, departments, business units or whatever they are called, that have diverse relationships with each other.

Stakeholder Analysis is the first step in Stakeholder Management. It is one of the most important aspects of business success. 

To start this process, you begin by putting together a list of the people who are affected by your work or are interested in what you are doing. You then rank them according to the interest they have in the project’s outcome and the power they have to impact it.

• Start by brainstorming who your stakeholders are
• Prioritize Your Stakeholders
• Focus on Results

An analysis of stakeholders will provide information on how best to manage stakeholder relationships by identifying strengths, weaknesses, opportunities, and threats in the process and allocate resources accordingly.

The outcome also identifies the various ways in which an organization can benefit different stakeholder groups, and then create policies that ensure these benefits are maximized while also striving to minimize the costs of attempts at meeting them.