Methods of stakeholder prioritisation in the context of stakeholder management

Abstract

Purpose – the purpose of this paper is to propose a method for integral assessing the priority level of specific stakeholders in the model of stakeholder management. Research methodology – the paper develops ideas of matrix approach to assessing the priority level of individual stakeholders and proposes a method for obtaining more accurate integral assessment based on analysis of a set of indicators, taking into account factors of subjective estimates. Findings – the integral assessment of the priority level of specific external stakeholders improves estimates’ accuracy and provides a practical framework for the development of successful corporate social responsibility strategies. It has been substantiated by the application of the proposed method for prioritising suppliers of a large Ukranian metallurgical company. Research limitations – there are requirements for a linear or quasi-linear nature of the relationship between the numerical value of the stakeholder’s priority index and its interpretation on a “better to worse” scale within the framework of the proposed method of evaluation. Practical implications – integral assessments of stakeholder priority obtained from the results of the proposed method can be used as a tool for reasonable comparison, selection of strategic stakeholders and building programs for interaction with them. Originality/Value – unlike most existing methods of stakeholder analysis representing a generic list of priority stakeholder groups the method proposed in the paper provides an integral assessment of priority level of specific stakeholders from the category of the immediate environment through a system of indicators, taking into account factors of subjectivity.