Question

• Describe the value in creating stakeholder dialogue and networks.

Answer 1

A ‘Stakeholder’ can be defined as anyone who has an interest in a company and holds a stake in the outcomes of its actions. The primary stakeholders in a typical organization are its investors, suppliers, employees and customers.

An organization and its activities greatly impact its stakeholders. The aspects of an organization’s funding and finances are highly dependent on them. Hence, it is imperative to maintain a healthy relationship with them and keep them updated. In the realm of social finance, demonstrating a powerful network and dialogue with stakeholders is of utmost importance in order to build credibility with those investors.

• For an organization, networking with stakeholders enables them to promote and sell their products and services efficiently.
• Networking with stakeholders can help an organization to be warned in advance, and be better prepared for unanticipated problems such as change a in legislation, etc.
• It is also beneficial in understanding customer and societal needs, that can help an organization to align its business activities accordingly.
• Stakeholder networking helps and organization to compete in an increasingly unpredictable business environment, while at the same time promote systematic changes within itself to encourage sustainable development.
• Networking can provide an organization with the necessary support when fund providers are planning to cease funding or utilization of its products or services.

In conclusion, stakeholder networking is crucial, especially for organizations that are poorly resourced, since it gives an organization access to market information, investment initiatives, resources, training, and other valuable insights.