- Better reputation with customers,
- Enhanced employee relations, resulting in improved recruitment and retention of talent,
- Reduced operating costs, and
- Lower business risk.
To date, much of the research in this field has focused on whether “good” firms make better returns in the stock markets - but stock markets are not actually efficient ways of measuring value.
First, the sheer number of stakeholders and their competing issues. This degree of complexity can be reduced by looking at the stakes, rather than the stakeholders.
The other key problem is prioritising stakes and stakeholders. Different firms go about this in different ways, often mixing issues such as ability to work with the stakeholder, degree of impact and the urgency of the issue. But this, in the end, becomes the key step.