Stakeholder management is the process used by an organization to organize, monitor and improve relationships with people who impact the business. The approach involves systematically identifying key stakeholders, constantly reviewing their needs and expectations, and setting up and implementing policies that enable effective engagement with them (“What is Stakeholder Management? - The Ultimate Guide”, 2021) . Stakeholder management is fundamental in maintaining good relationships with stakeholders, mitigating risks associated with them, aligning business goals, and eliminating delays. Stakeholder management is a primary driver in organizational culture and determines the organisation’s decision-making behaviours' strength or weakness.
Wells Fargo illegal sales practices created distrust among shareholders, which can be corrected by implementing the stakeholder management approach. The company, whose corporate vision included being ‘a trusted provider to its customers’ violated their code of conduct which created distrust among its stakeholders. The Well-Fargo scandal clearly showed a cultural disconnect between the top-level management and the junior-level employees (Lowenstein, 2016). The company can begin by creating a stakeholder experience from the inside out and outside in. To begin with, the leadership should focus on creating a culture of inclusion among employees by offering training, offering platforms for them to participate in decision making and giving them adequate compensation for the value they add to the company. A better working environment creates a more effective customer-centred approach for the bank as employees directly link the company and its clients (Lowenstein,2016). The organization may also employ the stakeholder approach by identifying and implementing ethical profit-making practices and preserving the environment. A sound corporate governance system that would be put in place by the board would help rebuild stakeholder relationships. Constant review of the company’s goals would ensure that the stakeholder’s expectations and the strategies to be implemented are aligned. The company should then use the feedback from its stakeholders to respond to its community’s needs and incorporate a third party to hold them accountable.
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References
Lowenstein, M. (2016). How Can Wells Fargo Recover From Massive Stakeholder Insensitivity? . Customer Think. Retrieved 23 May 2021, from https://customerthink.com/how-can-wells-fargo-recover-from-massive-stakeholder-insensitivity/ .
What is Stakeholder Management? - The Ultimate Guide . Darzin. (2021). Retrieved 23 May 2021, from https://www.darzin.com/stakeholder-management-ultimate-guide/#:~:text=Stakeholder%20management%20is%20the%20process,tasks%20to%20engage%20with%20them .
