A stakeholder is the one who can influence or be influenced by the actions, objectives and policies of an organization.
Stakeholders may be external or internal like our clients, vendors, service providers, staff etc. The process where in the stakeholders are directly or indirectly involved and are affected by the organization’s decisions or can influence the implementation of organization’s decisions is the stakeholder engagement.
Why stakeholder engagement:
When Stakeholders can affect or get affected by the actions and the achievements of the organization, an opportunity to engage them in commenting or suggesting on the development of decisions which affect them will be proved as a better option. If these kind of steps are not taken to engage the stakeholders, there might be a situation where in the organization is forced to engage them giving in for the demands of the stakeholders resulting in a difficult situation. When the organization is aware of the changes in the society and the effect of it on the organization, which relates to the overall performance of the organization then only a meaningful engagement takes place.
Benefits of stakeholder engagement:
An effective stakeholder engagement facilitates better planned and clear policies. The meaningful engagement can be mutually benefited to the external and internal stakeholders. For external stakeholders the benefits of engagement would be an opportunity to contribute their comments or suggestions and have their issues heard and participation in the decision making process and also greater opportunities to contribute directly to the policies through open and transparent communication. For internal stakeholders the benefit of engagement includes an opportunity to give their improved comments and suggestions which help in higher quality decision making.