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An alternative Stakeholder Management Tool
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stakeholder theory, the concept of
integrated CSR is presented by four
concentric circles, where the inner most
circle represent the core business
responsibility i.e profit making, this inner
circle is wrapped with legal and ethical
responsibility while the outermost circle is
the philanthropic responsibility.
Essence of the Paper
The paper is essentially based upon
the concept of stakeholder theory and
integrated corporate social responsibility.
There are many typologies and
classification of the stakeholder of a
business entity such as primary and
secondary (Clarkson 1995) based upon
the role of an individual or group and their
influence or impact on health of the
organization. The primary are those
without whose continuing participation
corporation cannot survive, these are
shareholders, employees, suppliers,
vendors, customer, communities and
government. The secondary are those who
are not in transaction with corporation and
are not so essential for survival. These are
media and civil society organization etc.
However, the stakeholder in the range of
primary, secondary and tertiary mostly
based upon the extent to which an
individual or group or an organization is
being affected or benefitted due to
establishment of Industry. In this way the
employees, suppliers, vendors and
customers are the primary stakeholder,
community is secondary stakeholder as it
is immediate to the primary stakeholder
to get directly affected or benefited due to
industry, at tertiary level Government,
political organization and civil society
organization are the stakeholder to
influence the business environment of the
company. The paper has tried to present
how interest of stakeholder has been
integrated in to the business interest through
CSR. Here, community and community
groups as the main stakeholder, have been
taken, in the process of formulating and
implementing Corporate Social
Responsibility which we usually mean in
the context of a social and philanthropic
responsibility of a company. The crux of
the paper is to present two cases where in
one case presents corporate social
responsibility in operational risk
management approach and other one
presents the CSR in a value creation
approach. Both the approaches in this
paper has been presented as an integration
approach, one is integrated with business
objective to manage the risk mostly in
reactive way, where as the other one is
integrated with core business value chain
and purpose in proactive way. Both
approaches are equally necessary and if
can be combined in an integrated
development approach becomes effective
and sustainable. The former approach is
exclusive in nature where as the later is
inclusive in nature, trying to create an
equity in distribution of benefits due to
industrialization across different section of
stakeholder communities. The paper also
tries to highlights the different CSR conflicts
based on the perception and attitude of
different stakeholder and how it can be