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2010 - Public Relations Society of America

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Prioritizing Stakeholders for <strong>Public</strong> <strong>Relations</strong>: A Case Study <strong>of</strong> Envirocare<br />

Kenneth D. Plowman and Brad L. Rawlins<br />

Brigham Young University<br />

plowman@byu.edu<br />

The value <strong>of</strong> stakeholders to the successful operation <strong>of</strong> businesses and other<br />

organizations have received greater emphasis in the business and public relations<br />

literature. Traditionally, businesses have almost exclusively focused on the value <strong>of</strong><br />

stockholders, employees and customers to help them reach their goals. However, there<br />

are other groups, without as much vested interest in the success <strong>of</strong> the organization,<br />

which can also affect business policy and the bottom line. The question becomes, how<br />

do you identify these groups and when can you know when they will have an impact?<br />

This is the question at the heart <strong>of</strong> stakeholder theory, and inadequate answers to the<br />

question have lead several scholars to criticize the theory and its subsequent artifact,<br />

stakeholder management.<br />

Some <strong>of</strong> the holes in the stakeholder literature can be plugged by research<br />

conducted in the field <strong>of</strong> public relations. In particular, public relations studies help to<br />

identify ways to prioritize publics in certain situations, and which publics are important in<br />

your communication strategies during these situations. This paper will merge the<br />

literature <strong>of</strong> stakeholder theory, stakeholder management, and public relations to develop<br />

a prioritizing strategy that is focused on the need to maintain key relationships during<br />

times <strong>of</strong> conflict. The strategy is based on three steps: First, identifying stakeholders;<br />

Second, prioritizing the stakeholders according to their attributes; and Third, prioritizing<br />

the stakeholders according to their level <strong>of</strong> interest in the situation.<br />

Defining Stakeholders and <strong>Public</strong>s<br />

As Grunig and Repper (1992) noted, “<strong>of</strong>ten the terms stakeholder and public are<br />

used synonymously” (p. 125). Stakeholders have been identified in the business<br />

literature according to their relationships to organizations. <strong>Public</strong>s, in the public relations<br />

and other mass media literature, are <strong>of</strong>ten identified according to their relationship to a<br />

message.<br />

Stakeholders<br />

Freeman and Reed (2008) assert that “the stakeholder notion is…a simple one. It<br />

says that there are other groups to whom the corporation is responsible in addition to<br />

stockholders: those groups who have a stake in the actions <strong>of</strong> the corporation” (p. 49).<br />

The most quoted definition <strong>of</strong> a stakeholder in business literature is that given by<br />

Freeman (1984) in his book, Strategic Management: A Stakeholder Approach. Freeman<br />

says a stakeholder is “any group or individual who is affected by or can affect the<br />

achievement <strong>of</strong> an organization’s objectives” (Freeman, 1984). In earlier writings, this<br />

definition is what Freeman refers to as the wide sense <strong>of</strong> a stakeholder; however, he also<br />

spoke <strong>of</strong> the narrow sense <strong>of</strong> a stakeholder when he described it as, “any identifiable<br />

group or individual on which the organization is dependent for its continued survival”<br />

(Freeman & Reed, 2008, p. 51). Preston and Donaldson (1995) agreed with the<br />

definitions <strong>of</strong> Freeman and other scholars, but are careful to make an important addition:<br />

“Stakeholders are identified by their interests in the corporation,” regardless <strong>of</strong> the<br />

corporation’s interest in them. Other scholars are specific when they say the stakeholders<br />

195

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