Chapter 2

Managing Public Issues and

Stakeholder Relationships


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Prepared by:
1. Augustpaosa Nariman (126131004)
2. Fanny Andriani (126131005)
3. Yuli Angelia (126131006)
4. Kenny Fitelia (126131012)

Ch. 2: Key Learning Objectives
Evaluating public issues and their significance to the
modern corporation
Applying available tools or techniques to scan an
organizations multiple environments
Describing the steps in the issue management
process and determining how to make the process
most effective
Identifying who is responsible for managing public
issues and the skills required to do so effectively
Understanding how business can build collaborative
relationships with stakeholders through engagement,
dialogue, and network-building
Identifying the benefits of stakeholder engagement to
the business firm
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Public Issues
Public issue
Any issue that is of mutual concern to an organization
and one or more of its stakeholders

Stakeholder expectations
A mixture of peoples opinions, attitudes, and beliefs
about what constitutes reasonable business behavior

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Public Issues: Performance-
Expectations Gap
Discrepancy between what stakeholders
expect and what an organization is actually
doing
Important to identify emergent expectations
as early as possible
Doing so can gain the company competitive advantage
Failure to understand stakeholder concerns
and to respond appropriately will:
Cause the performanceexpectations gap to grow
The larger the gap, the greater the risk of stakeholder
backlash or missing a major business opportunity

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Figure 2.1
The Performance-Expectations Gap
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The Corporations Boundary-
Spanning Departments
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Figure 2.2
Environmental Analysis and
Intelligence
Environmental analysis
A method managers use to gather information about
external issues and trends, so they can develop an
organizational strategy that minimizes threats and
takes advantage of new opportunities

Environmental intelligence
The acquisition of information gained from analyzing
the multiple environments affecting organizations

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Eight Strategic Radar Screens
Figure 2.3
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Competitive Intelligence
The systematic and continuous process of
gathering, analyzing, and managing external
information about the organizations competitors
that can affect the organizations plans, decisions
and operations
Numerous ethical issues arise in acquisition and
use of information gathered through competitive
intelligence, public affairs managers must be
keenly aware of these issues
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Figure 2.4
The Issue Management Process
The process continuously cycles back to the beginning and repeats
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The Issue Management Process
1. Identify Issue
Anticipating emerging concerns, or horizon issues
2. Analyze Issue
Evaluating the issue; coming to an understanding of
how it will evolve and how it will affect the organization
3. Generate Options
Evaluating action options, involves complex
judgments that take into account non-quantifiable
factors like the companys reputation
4. Take Action
Once option is chosen, must design and implement it
5. Evaluate Results
Must assess results of the program and make
adjustments as needed
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