Question

1. Explain how effective stakeholder management is related to sustainability and sustainable development

Answer 1

There is a strong relationship between effective stakeholder management and sustainable development. Stakeholders are the people or parties that are directly or indirectly affected by the company and its products or services. It is the main objective of the organization to provide satisfaction to its consumers and other stakeholders with its policies, products, services, and in terms of money. If the stakeholders are not satisfied with the company in any way, they will give no support to the company and due to this sustainable development would not be possible.

Stakeholder satisfaction is the main driver to create and develop sustainability in society. The project manager and the management of the organization need to ensure that each stakeholder and their concerns/interests are taken into account in the development of products, services, or common solutions. The project manager and management need to engage with each stakeholder and need to exchange information, and listening & learning from the stakeholders to ensure strategic development and operational excellence for the organization. It will affect the sustainable development in the organization from which stakeholders, organisations and external society would get benefits from it. The main objective of stakeholder engagement with regards to sustainable development are discussed in the below points,

a. Effective stakeholder management and engagement will help in better decision making and provide better solutions for complex problems.

b. It helps in better production and productivity by the organization that will help in having better policies and standards for the society that leads to better sustainable management and development.

c. Better stakeholder engagement will help in better communication, integration of ideas, better resource planning, collaboration with stakeholders, leadership commitment, and understanding the needs of the society that will help in providing better solutions for the environment and societal development.

Stakeholders could be engaged in various ways with the organization and can have communication of having complex issues in society and provide better solutions by mutual understanding and collaboration. They can share important information with each other and can have participated in better decision making for those complex issues that are available in society and connected communities. Sustainability is the art of doing business and taking care of each stakeholder's needs and interests and development standards and policies for environmental development. Each organization need to assess and develop appropriate methods or systems to identify and control their behaviour and to know whether they organization is responding effectively shareholder concerns and communicate results and other information regularly. Value creation by its business activities and processes are very important that will influence the stakeholder to have better ideas, and policies to develop the organization and achieve their mutual goals. The capability of the wealth creation and long term value creation is dependent on the relationship between organization and its stakeholders. These relationship is very important that each manager and other employee in the organization should work to improve it and help the organization to have better sustainable planning and management.