Stakeholder relations refers to the building of alliances with third-parties such as other industry players, non-governmental organisations, think-tanks, formal or informal consortiums, in order to advance key interests on a given topic by developing a single credible and united front.
Stakeholder relations helps to encourage the development of policies that support the common interest of all parties within the alliance, or in some cases, prevent the adoption of legislations that would jeopardize their business or other vested interests.
A strong stakeholder relation is developed through a meticulous mapping of key stakeholders followed by a series of strategised engagements and negotiations.
Why is it necessary to develop stakeholder relations?
There can be different instances when a company needs to engage in a dialogue with other stakeholders, in order to be a credible voice in any policy discussion. An alliance can also help an organisation expand its policy position which can develop into an even more inclusive one.