ABSTRACT
ENVIRONMENTDISCUSSEDIN#HAPTER7ITHREGARDTOTHETURBULENT lELDTEXTURE THEYSUGGESTEDTHAT INSUCHAHIGHLYVOLATILEENVIRONMENTSTABILITYBECOMES TENUOUSAND@VALUESTHATHAVEAN@OVERRIDINGSIGNIlCANCEFORALLMEMBERSOFTHE lELDCANSERVEASAPOSSIBLESTABILIZINGOR@CONTROLMECHANISMFORACTORSASTHEY COPEWITHAREASOFUNCERTAINTY)NDEEDAS%MERYAND4RIST SUGGESTSHARED VALUESPROVIDETHEFOUNDATIONFORCOLLECTIVEACTIONTHATMIGHTCHANGETHETEXTURE OFTHElELDBACKTOALESSTURBULENTSTATE)NTHATSENSEVALUESSERVEASACOMMON GROUNDWHICHFACILITATESSTABILITY#HAPTERINTHISVOLUMEEXPLORESHOWTHISWAS MADEPOSSIBLEIN3WEDISHHEALTHCARE /NEOFTHEKEYCHALLENGESASSOCIATEDWITH#32ISANONGOINGLACKOFAGREE
MENTONITSFUNDAMENTALSCOPEANDCONTENT"ASUAND0ALAZZOP IDENTIlEDTHREEMAINLINESOF#32ENQUIRYPREVALENTINTHEACADEMICLITERATURE THESTAKEHOLDERDRIVENWHERE#32ISVIEWEDAS@ARESPONSETOTHESPECIlCDEMANDS OFLARGELYEXTERNALSTAKEHOLDERS THEPERFORMANCEDRIVENWHICH@EMPHASIZESTHE LINKBETWEENEXTERNALEXPECTATIONSANDAlRMSCONCRETE#32ACTIONSFOCUSINGON #32PERFORMANCEMEASUREMENTANDSELECTIONOFTHEACTIVITIESTHATCANBESTDELIVER THEREQUISITEPERFORMANCE ANDTHEMOTIVATIONDRIVENWHICHEXAMINESEITHER@THE EXTRINSICREASONSFORAlRMS#32ENGAGEMENTORTHE@INTRINSICRATIONALESOFTHE ASSOCIATEDOBLIGATIONSANDRESPONSIBILITIES #32HASBEENDElNED INNUMEROUSANDOFTENCONTRADICTORY WAYSOVER
THE PAST YEARS THAT THE CONCEPT HAS BEEN DISCUSSED IN THEMANAGEMENT LITERATURE!NDREWSP SORTEDTHESEVIEWSINTOTWOCATEGORIESTHE@SOCIAL INTERVENTIONISTS IE#32SUPPORTERS ANDTHE @ECONOMIC ISOLATIONISTSn IE SUPPORTERSOFECONOMICIMPERATIVESEXPRESSEDBY&RIEDMAN !RROW ANDOTHERS4HISDICHOTOMYEXISTSEVENTODAY
4HE SOCIAL INTERVENTIONISTS VIEW#32AS EXTENDINGBEYOND THEMINIMUM LEGALREQUIREMENTSANDGIVEEMPHASISTOCOMPANIESVOLUNTARYENGAGEMENTIN ACTIVITIESTHATWOULDADVANCESOCIETALWELL BEING/NTHEOTHERHANDTHEECONOMIC ISOLATIONISTSVIEWISBESTREPRESENTEDBYTHEWELL KNOWN#32DElNITIONPROVIDED BY-ILTON&RIEDMANIN@THEREISONEANDONLYONESOCIALRESPONSIBILITYOF BUSINESSnTOUSEITSRESOURCESANDENGAGEINACTIVITIESDESIGNEDTOINCREASEITSPROlTS SOLONGASITxENGAGESINOPENANDFREECOMPETITIONWITHOUTDECEPTIONORFRAUD &RIEDMANP 5NLIKEEARLIERDElNITIONS&RIEDMAN IMPLIEDTHAT CORPORATIONSANDMANAGERSHAVERESPONSIBILITYONLYTOSHAREHOLDERS &ORTHEPURPOSESOFTHISCHAPTER#32ISDElNEDAS@THENOTIONTHATCORPORATIONS
HAVEANOBLIGATIONTOCONSTITUENTGROUPSINSOCIETYOTHERTHANSTOCKHOLDERSAND BEYONDTHATPRESCRIBEDBYLAWORUNIONCONTRACT*ONESPPn*ONESET ALP #32ISSTRONGLYLINKEDINTHEACADEMICLITERATUREANDINEVERYDAY BUSINESSPRACTICE WITHTHENOTIONOFBUSINESSETHICSBUTTHERELATIONBETWEEN THEMREMAINSCONTESTED3OMEARGUETHAT#32ISASUBSETOFBUSINESSETHICSAND OTHERSTHATBUSINESSETHICSISASUBSETOF#32&ORINSTANCE#ARROLLP PROPOSEDTHAT#32CONSISTSOFFOURRESPONSIBILITIESWHICHFORMA@PYRAMIDETHICAL RESPONSIBILITYISONEOFTHEM#HAPTERINTHISVOLUMEONFAIRNESSINANDOF SCENARIOSSHOWSTHATETHICALCONSIDERATIONSIN#32AREALSOIMPORTANTINSCENARIO WORK :ENISEKPPn REmECTEDON%MERYAND4RISTS WORKAND
NOTEDTHATBUSINESSETHICSINTHEFORMOFSOCIALRESPONSIBILITYCANTRANSFORMTHE ENVIRONMENTSOTHATANEW@NOLONGERTURBULENTANDRELATIVELYSTATICENVIRONMENT ISCREATED)NOTHERWORDS#32REPRESENTSTHEDEGREEOF@lTBETWEENTHEETHICS OFBUSINESSANDSOCIETYSEXPECTATIONSOFTHEBUSINESSCOMMUNITY3EVERALSCHOLARS STUDYINGSOCIALISSUESINMANAGEMENTHAVEALSOEMBRACEDTHEIDEATHAT#32OR OTHERSIMILARCONCEPTSCANSERVEAS@COMMONGROUND&ORINSTANCE3AVAGEET AL ARGUEDTHATSTAKEHOLDERMANAGEMENTCANSERVEASAMEANSOFCOPING WITHENVIRONMENTALUNCERTAINTY"ASEDONTHISOVERVIEWTHEQUESTIONARISESAS TOWHETHERSCENARIOSCANPLAYAROLEINBETTERPREPARINGORGANIZATIONSTOSURVIVE INATURBULENTENVIRONMENT4HISWILLBEDISCUSSEDPARTICULARLYWITHREGARDTO THEGROWINGCONCERNANDDEMANDFROMSOCIETYANDCORPORATESTAKEHOLDERSFOR COMPANIESTOBEMOREACTIVELYANDPROACTIVELY INVOLVEDIN#32PRACTICES
3CENARIOPLANNINGCANlNDAPPLICATIONINDIFFERENTTYPESOFDECISION MAKING ASSOCIATEDWITHHIGHLEVELSOFTURBULENCE%LLISAND&EINSTEIN FORINSTANCE UNDERLINEDTHEROBUSTNESSOFSCENARIOLEARNINGASATOOLFORBETTERDECISION MAKING PARTICULARLYWITHREGARDTOlNANCIALPLANNING3IMILARLYWITHINTHECONTEXTOF RISKMANAGEMENT-ILLERAND7ALLER SUGGESTEDTHATTHECOMBINATIONOF
SCENARIOSFROMTHESTRATEGICMANAGEMENTlELD ANDREALOPTIONSFROMTHElNANCE lELD CANMOREEFFECTIVELYHELPACOMPANYTOIMPROVEITSmEXIBILITYANDTHEQUALITY OF ITS INVESTMENTDECISIONS!STHESEEXAMPLES INDICATEDECISION MAKERSCAN ANDDO USESCENARIOPLANNINGINAVARIETYOFCONTEXTSANDSITUATIONSEITHERASA STAND ALONETECHNIQUEORINCOMBINATIONWITHOTHERAPPROACHESINORDERTOBETTER PREPARETHEIRORGANIZATIONSINTIMESOFINCREASEDUNCERTAINTY /NEDEVELOPMENTISTHEEFFORTTOUSESCENARIOPLANNINGTOADDRESS#32ISSUES
PARTICULARLYTHOSERELATEDTOSUSTAINABILITY%ARLYADVOCATESOFTHEVALUEOF#32 RELATEDSCENARIOSWERE%LKINGTONAND4RISOGLIO WHOFOCUSEDTHEIRATTENTION ON@SUSTAINABILITYSCENARIOS4HEYOBSERVEDTHATWITHSUSTAINABLEDEVELOPMENT BECOMINGASTRATEGICISSUEFORORGANIZATIONSMANAGERSWEREINCREASINGLYREALIZING THENEEDTODEVELOPWINnWINSOLUTIONSFORTHEMANDTHEIRSTAKEHOLDERS4HIS REQUIRESHAVINGABETTERUNDERSTANDINGOFSUSTAINABILITYANDITSIMPLICATIONS4HEY CLAIMTHATTHEDEVELOPMENTOFSUSTAINABILITYSCENARIOSCANHELPCOMPANIESTO BETTERCOPEWITHTHECOMPLEXITYOFDOINGBUSINESSININTERNATIONALENVIRONMENTS BECAUSETHISPLANNINGTECHNIQUECANEFFECTIVELYPREPAREBUSINESSEXECUTIVESAND THEIRCOMPANIESFORSTRATEGIC@SURPRISES/NESUCHSURPRISETHEAUTHORSANALYSE IS2OYAL$UTCH3HELLSMESSYINVOLVEMENTWITHTHE"RENT3PAREVENTSOF %LKINGTON AND4RISOGLIO EVALUATED THE WELL KNOWN 3HELL 3CENARIOS PUBLISHEDUPTOANDIDENTIlEDWHATTHEYCALLA@BLINDSPOTnNAMELYTHE ABSENCEOFANEGALITARIANPERSPECTIVE-OREBROADLYTHEYALSOUNDERLINETHATTHE EGALITARIANPERSPECTIVEHASBEENMISSEDBYMUCHOFTHEINTERNATIONALBUSINESS COMMUNITY4HEAUTHORSARGUETHAT@HAD3HELLINCLUDEDANEGALITARIANPERSPECTIVE AMONGITSSCENARIOSITWOULDHAVEBEENMUCHLESSLIKELYTOHAVEBEENSURPRISED BYTHE'REENPEACERESPONSETOTHE"RENT3PARISSUE%LKINGTONAND4RISOGLIO P (OWEVERTHISINMYVIEWINVOLVESTHEERRONEOUSUSEOFSCENARIOSAS FORECASTSnONECANNOTCONSIDERTHATASCENARIOSET@SHOULDHAVEHADAVIEWPOINT AFTERTHEFACTTHATISWHATFORECASTSNOTSCENARIOSAREMEANTTODO)TMAYWELLBE THECASETHAT3HELLSSCENARIOSETHADABUILT INBIPOLARSCENARIOSTRUCTURE)N ITSMOSTRECENTSCENARIOSETTHECOMPANYPROPOSEDTHREENOTTWOSCENARIOSTHAT ALLOWEDFORANEGALITARIANPERSPECTIVETHATWASMEANTTOOPENTHEPOSSIBILITYOFA DIALOGUESPACETHATTHEBIPOLARSTRUCTUREDISALLOWED 2ECENTLY3TORMER SUGGESTEDTHATTHEECONOMICPARADIGMWHICHSEES
PROlTMAXIMIZATIONASTHEPRIMARYOBLIGATIONOFCORPORATIONSDOESNOTALLOW #32TOSHIFTBEYONDTHENOTIONOFANENLIGHTENEDSELF INTERESTINTHESENSEOF ACTINGSOCIALLYRESPONSIBLYINORDERTOFURTHERONESOWNENDS 4HEAUTHORNOTED THATSUCHANEOCLASSICALECONOMICJUSTIlCATIONOFTHESTAKEHOLDERMODELOFTHE CORPORATIONISNOLONGERPERTINENTWITHINANINCREASINGLYCOMPLEXENVIRONMENT ,INKINGTHECONCEPTOFENVIRONMENTALCOMPLEXITYWITHTHEUSEOF#32SCENARIOS 3TORMER CALLEDFOR#32TOBECONCEPTUALIZEDWITHINAN@INTER SYSTEMS MODELWHEREBUSINESSISSEENASONEOFSEVERALINTERRELATEDSYSTEMS3HEARGUES THAT THESHIFT FROMONEMODEL TOANOTHERMAYBE FACILITATEDBYTHEUSEOFA
MODIlEDVERSIONOFTHESCENARIO PLANNINGPROCESS4OBEEFFECTIVETHISREQUIRESTHE PARTICIPATIONOFANOUTSIDERAN@AUTHENTICCRITIC INTHESCENARIO PLANNINGPROCESS SINCETHESCENARIOSTHATAREDEVELOPEDSOLELYBYMANAGERSWITHINTHEORGANIZATION THEINSIDERS WOULDPROBABLYRECAPITULATETHEENLIGHTENEDSELF INTERESTMODEL )TISTHEPARTICIPATIONOFTHECRITICWHOMAYORMAYNOTBEASTAKEHOLDER WITH ACOMPLETELYDIFFERENTMENTALMODELOFBUSINESS AND SOCIETYRELATIONSTHATCAN MAKE#32SCENARIOPLANNINGEFFECTIVE-EDJADAND2AM¤REZ EXPLORED HOWLEGALPROFESSIONALSWOULDBEAFFECTEDIFTHEYUSEDSCENARIOPLANNINGIN#32 BUTTHEYALSOSUGGESTTHATTHISPOSSIBILITYDOESNOTEXISTINPRACTICEORIFITDOES ISNOTWELLDOCUMENTED 4HEGROWING SOCIETALPRESSUREPUSHINGORGANIZATIONS TO ACT IN A SOCIALLY
RESPONSIBLEMANNERMAKES#32SCENARIOPLANNINGANIMPORTANTMETHODFOR ORGANIZATIONSTHATWANTTOBETTERPREPARETHEMSELVESFORFUTURECHALLENGES)TIS NOTJUSTOFACADEMICINTEREST
4HEABOVEDISCUSSIONOPENSUPASETOFQUESTIONSWITHREGARDTOTHEROLEOF#32 AMIDSTENVIRONMENTALTURBULENCEANDTHEROLETHATSCENARIOSCANPLAYCAN#32 SERVEASACONTROLMECHANISMFORORGANIZATIONSOPERATINGINTURBULENTENVIRONMENTS BYPROVIDINGAPLATFORMFORCOMMONGROUNDBETWEENORGANIZATIONSANDTHEIR STAKEHOLDERS#AN#32 RELATEDSCENARIOSHELPINMITIGATINGTHETURBULENCEFACED BYORGANIZATIONS )EXAMINEDTHESEQUESTIONSINTWOCASESTUDIESTHATWERECONDUCTEDASPARTOFA
LARGE SCALERESEARCHPROJECTTHEAIMOFWHICHWASTOUNDERSTANDWHYORGANIZATIONS ENGAGEIN#32PRACTICES!THANASOPOULOU 4HESTUDYINVOLVEDQUALITATIVE MAINLYFACE TO FACEINTERVIEWSWITHMANAGERSOFTWOORGANIZATIONSDURING*ULY TO.OVEMBERBASEDONANINTERVIEWSCHEDULEOFOPEN ENDEDQUESTIONS 4HEINTERVIEWSWERECODEDANDANALYSEDUSINGTHE.6)6/SOFTWARE "OTHCOMPANIESSTUDIEDAREMULTINATIONALSONEISAPUBLIC SERVICEUTILITYAND
THEOTHERISATOBACCOCOMPANY&ORREASONSOFCONlDENTIALITYPSEUDONYMSARE USED!TTHETIMETHATTHElELDWORKWASCONDUCTEDBOTHCOMPANIESWEREAMONG THELEADINGORGANIZATIONSWORLDWIDEINTHEIRRESPECTIVEINDUSTRIESINTERMSOF MARKETSHARE4HESTUDYENTAILEDINTERVIEWSWITHMANAGERSFROMEACHOFTHETWO ORGANIZATIONS!TTHEPUBLIC SERVICEUTILITY54), MANAGERSFROMVARIOUS DEPARTMENTS#32ANDNON #32 WEREINTERVIEWED!TTHETOBACCOCOMPANY 4/" THEINTERVIEWEESWEREINTERNAL4/"MANAGERSFROM#32ANDNON #32DEPARTMENTS ANDEXTERNALMANAGERSOFCONSULTINGORGANIZATIONSWHOWERE WORKINGWITHTHE4/"ONITS#32IMPLEMENTATIONEFFORTS
UTIL: The utility company
54),USEDTOBEASTATE OWNEDORGANIZATIONTHATWASSUBSEQUENTLYPRIVATIZEDAND SOMEYEARSLATERWASACQUIREDBYALARGECONGLOMERATE54),BELONGSTOAHEAVILY REGULATEDINDUSTRY4HECOMPANYRECENTLYSETUPA#32DEPARTMENTBUTHASDONE CONSIDERABLEWORKONTHEAREAOFENVIRONMENTALMANAGEMENTANDHASPRODUCED ENVIRONMENTALREPORTSFORMANYYEARSBEFORETHAT!TTHETIMETHElELDWORKWAS CONDUCTED54),S#32EFFORTSWEREPROJECT SPECIlCRATHERTHAN#32BEINGAN INTEGRALPARTOFTHEWAYINWHICHTHECOMPANYOPERATED2ECENTLY54),FACEDAN IMPORTANTCHALLENGEITWASPRESSUREDBYITSPARENTCOMPANYTOMAKEAMAJORSHIFT INITSEXPANSIONSTRATEGYWHICHDIRECTLYCONTRADICTED54),SPRIORDECISIONTOHELP INPRESSINGDEVELOPINGWORLDISSUES4OlNDABALANCEBETWEENTHESESOMEWHAT CONTRADICTORYPRESSURES54),S#32DEPARTMENTWORKEDTOGETHERWITHAMEMBER OFTHETOPLEADERSHIPTODEVELOPALARGE SCALE#32PROJECTWHICHWASARRANGEDIN SUCHAWAYTHATBOTHOBJECTIVESWOULDBESATISlED
TOB: The tobacco company
4/"ISALEADINGTOBACCOCOMPANYHOLDINGASIGNIlCANTPERCENTAGEOFTHEWORLDS GLOBALTOBACCOMARKETWITHHUNDREDSOFBRANDSINITSPORTFOLIO!SATOBACCO COMPANY4/"FACESSTRINGENTREGULATIONANDNUMEROUSLITIGATIONCASESDUETO THEPOTENTIALRISKITSPRODUCTSPOSETOPUBLICHEALTH 4/"STARTEDITS#32IMPLEMENTATIONEFFORTSAFEWYEARSAGOASARESULTOF
ANINTERNALRECOGNITIONTHATTHECOMPANYWASGRADUALLYBECOMINGISOLATEDFROM ITSSTAKEHOLDERS4HISWASPRIMARILYDUETOTHEDEFENSIVEPOSTUREITHADADOPTED OVERTHECRITICISMITHADBEENRECEIVINGASPARTOFCHANGINGSOCIETALPERCEPTIONS REGARDINGTOBACCOUSE4HECOMPANYDEVELOPEDANEWCORPORATEVISIONWITH#32 SETASANINTEGRALPARTOF4/"SCORPORATESTRATEGY4HISMEANTTHATFROMTHEN ONWARDSEVERYSTRATEGICDECISIONWOULDBElLTEREDFROMA#32PERSPECTIVETO ENSURETHATITWASSOCIALLYRESPONSIBLE4HECOMPANYALSOENGAGESINAVARIETY OF#32PRACTICESINCLUDINGCHARITABLEDONATIONSSPONSORSHIPSOFBIODIVERSITY PROGRAMMESEMPLOYEEVOLUNTEERINGANDSTAKEHOLDERDIALOGUESESSIONS )NTHE4/"#32ISPERCEIVEDASTHEWAYINWHICHTHECOMPANYOPERATES
RATHERTHANAPROJECT BASEDSTAND ALONEPROCESS4HECOMPANYHASDEVELOPED ELABORATESOCIALREPORTINGANDGOVERNANCEMECHANISMSWHICHAREGRADUALLYBEING ADOPTEDBYITSLOCALOPERATIONSACROSSTHEWORLD/NEOFTHEKEYELEMENTSOF THECOMPANYS#32EFFORTSISASTAKEHOLDERENGAGEMENTPROCESSWHICHINCLUDES REGULARSTAKEHOLDERDIALOGUESESSIONSWHERE4/"EMPLOYEESINCLUDINGITSTOP LEADERSHIP PARTICIPATE
Findings
#ONSIDERINGTHAT54),SPUBLICSERVICEOFFERINGISVITALFOREVERYDAYLIFEWHEREAS TOBACCOPOSESHEALTHRISKSONEMIGHTASSUMETHATTHETOBACCOCOMPANYWOULD
FACEGREATERTURBULENCETHANTHEPUBLICSERVICECOMPANY(OWEVERACLOSERLOOK ATTHECASEBACKGROUNDSREVEALEDTHATBOTHCOMPANIESAREINHIGHLYTURBULENT ENVIRONMENTSEACHOFADIFFERENTNATURE!TTHETIMEOFTHERESEARCH54),FACED HEIGHTENEDTURBULENCEINITSENVIRONMENT4HETYPEANDNATIONALITYOF54),S OWNERSHIPHADCHANGEDANDTHECOMPANYHADALSOTOBALANCEBETWEENTHEPARENT COMPANYSOBJECTIVESANDITSPREVIOUSCOMMITMENTTOHELPINADDRESSINGPRESSING DEVELOPINGWORLDISSUESnTWOSEEMINGLYOPPOSITEOBJECTIVES&URTHERMORETHE PUBLIC SERVICEINDUSTRIESREMAINHIGHLYREGULATEDWITHREGARDNOTONLYTOTHE OPERATIONALASPECTSOFTHESERVICESTHATTHESECOMPANIESPROVIDEBUTALSOTHE PRICESTHEYSETFORTHOSESERVICES$UETOTHEIMPORTANCEOFTHEIRSERVICEPUBLIC SERVICECOMPANIESAREUNDERVERYSTRICTMONITORINGFROMPUBLICREGULATORSAND NON GOVERNMENTALORGANIZATIONS.'/S )FOUNDTHATTHE4/"ALSOFACEDHIGHTURBULENCEINTERMSOFITSEXTERNAL
ENVIRONMENT)TWASANDSTILLIS MADEUPOFPOTENTIALLYHOSTILESTAKEHOLDERSSUCH ASGOVERNMENTSPUBLICREGULATORSORNON GOVERNMENTALADVOCACYORGANIZATIONS THELATTERBEINGPARTICULARLYHOSTILETOWARDSTHECOMPANYDUETOTHEPOTENTIALRISK TOBACCOCAUSESTOHEALTH4HEANALYSISOFTHEDATALEDTOTHEFOLLOWINGlNDINGSWITH REGARDTOTHEROLEOF#32ASAVEHICLEFORDEVELOPINGCOMMONGROUNDBETWEEN COMPANIESANDTHEIREXTERNALENVIRONMENT
CSR: Stabilizing through common ground? )NTERVIEWEESWEREASKEDTOCOMMENTONWHATTHEIRCOMPANYSEEKSTOACHIEVE THOUGH#32PRACTICES4HROUGHTHISTHEAIMWASTOUNDERSTANDWHETHER#32 SERVESASALINKBETWEENTHECOMPANYANDTHEENVIRONMENTINWHICHITOPERATES ANDIFSOHOW )NTERVIEWEESRESPONSESCONlRMEDTHAT#32CANSERVEASTHECOMMONGROUND
BETWEEN THEORGANIZATIONAND ITS TURBULENT ENVIRONMENTANDAS AMEANSOF IMPROVINGITSINTERNALPROCESSES3PECIlCALLYINTERVIEWEESINBOTHCOMPANIES DESCRIBED#32INTHEFOLLOWINGTERMSASAFETYMECHANISMINCASESOFFAILURE OFREPUTATIONASOURCEOFDIFFERENTIATIONANDLEADERSHIPABOOSTTOEMPLOYEE MORALEANDGOOD QUALITYEMPLOYEERECRUITMENTANOPPORTUNITYFORTHECOMPANY TO@GIVEBACKTOSOCIETYTOCONTRIBUTETOSUSTAINABLEDEVELOPMENTTOIMPROVETHE WAYQUALITYEFFECTIVENESSOFDOINGBUSINESSANINTERNALANDEXTERNALVALIDATION OFBEINGARESPONSIBLECOMPANYIEALEGITIMIZATIONTOOL THERIGHTTHINGTODO PREFERREDBYSHAREHOLDERSSINCETHELACKOF#32MAYENTAILlNANCIALIMPLICATIONS FORTHECOMPANYASOURCEOFORGANIZATIONALLEARNINGANDIMPROVEMENTAND lNALLY AMEANSOFENHANCINGCORPORATE REPUTATION3OMEOF THESEELEMENTS WEREHIGHLIGHTEDASMOREIMPORTANTIN54),THANIN4/"ANDVICEVERSA&OR INSTANCETHEVIEWTHAT#32CONSTITUTESAMEANSOFDIFFERENTIATIONANDLEADERSHIP WASNOTEDBYOUTOF54),MANAGERSINTERVIEWEDBUTBYONLYOUTOF 4/"MANAGERS/NTHEOTHERHANDTHEVIEWTHAT#32ISALEGITIMIZATIONTOOLWAS ESPOUSEDBY4/"MANAGERSWHILENO54),MANAGEREXPRESSEDSUCHAVIEW
4HEABOVECLEARLYADDRESSESDIFFERENTASPECTSOFENVIRONMENTALTURBULENCE ANDCONlRMEDTHATMANAGERSTENDEDNOTTOAGREEWITH-ILTON&RIEDMANS @ISOLATIONISTVIEWBUTINSTEADSAW#32ASAWAYOFBRIDGINGWHATWEREOFTEN PERCEIVEDASIRRECONCILABLEDIFFERENCESBETWEENWHATACOMPANYSEEKSTOACHIEVE ANDWHATTHESOCIETYEXPECTSFROMTHECOMPANY&ORINSTANCEBYSTATINGTHAT#32 IS@ANOPPORTUNITYTOGIVEBACKTOSOCIETYORTHAT@ITISTHERIGHTTHINGTODOORTHAT #32EFFORTS@CONTRIBUTETOSUSTAINABLEDEVELOPMENTTHESEMANAGERSINESSENCE SAW#32ASATOOLFORADDRESSINGTHEGAPBETWEENTHECOMPANYSPERFORMANCEAND SOCIETYSEXPECTATIONSANDSOFTENINGTHEFRICTIONSTHATTHEYFACEDORMAYFACEIN THEFUTURE 4HISWAS PARTICULARLY PERTINENT TO THE4/"WHICH HAD BEEN ENDURING
ACUTESTAKEHOLDERHOSTILITY!MONGTHEMANYDIFFERENTTYPESOF#32PRACTICES INWHICHTHE4/"WASACTIVEMYSENSEFROMTHElELDWORKWASTHATTHEONES WHICHTENDEDTOBEMOSTVALUABLEANDHELPFULINCREATINGCOMMONGROUNDWERE THESTAKEHOLDERDIALOGUESESSIONSCOMPAREWITH-ARTIN4HOMASSEXPERIENCEIN 6ENEZUELADOCUMENTEDIN#HAPTERWHEREHEFOUNDITIMPOSSIBLETOORGANIZE SUCHSESSIONS 4HISISBECAUSEEACHOFTHESESESSIONSENTAILEDACTIVEPARTICIPATIONOF MANAGERSFROM#32ANDNON #32RELEVANTDEPARTMENTSANDFROMVERYDIFFERENT LEVELSINTHEORGANIZATIONALHIERARCHY INDIALOGUEWITHTHE4/"SSTAKEHOLDERS !SSOMEOFTHEINTERVIEWEESNOTEDTHISSOMETIMESMADEFORADIFlCULTEXPERIENCE BECAUSETHEYWEREEXPOSEDTOOFTENHOSTILEATTITUDESORIRONICCOMMENTSBYSOME OFTHEPARTICIPATINGSTAKEHOLDERS(OWEVEREVENTHEFACTTHATSTAKEHOLDERSAGREED TOATTENDSUCHASESSIONANDENGAGEINDIALOGUEWITHTHECOMPANYWASCONSIDERED AGREATSTEPFORWARD4HISHELPEDINTHECOMPANYSEFFORTTOIDENTIFYACOMMON GROUNDWHEREBOTHTHECOMPANYANDTHESTAKEHOLDERSCOULDCOMMUNICATEWITH THEULTIMATEOBJECTIVEBEINGTHESTABILIZATIONASMUCHASTHISISFEASIBLE OFTHE VOLATILEENVIRONMENT4HISWASTHECONCLUSION)REACHEDBASEDONTHEEXAMPLES THATSEVERALINTERVIEWEESOFFEREDTOINDICATEHOWFROMTHElRSTSTAKEHOLDERSESSION TOTHESECONDORTHIRDTHEYCLEARLYFELTLESSHOSTILITYFROMTHESTAKEHOLDERSWHOWERE INVITEDINEACHSESSION4HEFOLLOWINGQUOTESAREINDICATIVEOFTHIS
4HISSUGGESTSTHATLIKESCENARIOS#32MAYHAVEAROLEINPRODUCINGCLARITYSEE #HAPTER
4HEREWERENUMEROUSACCOUNTSBYINTERVIEWEESWHICHILLUSTRATEDTHAT#32SERVED ASASTABILIZINGMECHANISM4HESEWEREBESTIDENTIlEDWHENINTERVIEWEESWERE ASKEDTOCOMMENTONMEASURESOF#32SUCCESS4HEFOLLOWINGQUOTEISINDICATIVE OFTHIS
!LONGSIMILARLINESANOTHERMANAGERSAID
4HEABOVEQUOTESINDICATETHAT#32BECAMEAPOINTOFCONTACTNOTONLYINTERNALLY AMONG4/"S EMPLOYEES BUT ALSO EXTERNALLYBETWEEN THE COMPANY AND ITS EXTERNALSTAKEHOLDERS7ITHREGARDTOTHECOMPANYSINTERNALENVIRONMENTAS THESEINTERVIEWEXCERPTSILLUSTRATE#32GAVE4/"EMPLOYEESASENSEOFPRIDEIN THEIRCOMPANYANDINWHATTHEYDO4HEINTERVIEWEESREPORTEDTHATTHISIMPROVED EMPLOYEESMORALEANDHADAPOSITIVEIMPACTUPONTHEIRWORKENVIRONMENT 7ITHREGARDTOTHECOMPANYSEXTERNALENVIRONMENTCLEARLY#32BECAMETHE
COMMONGROUNDTOWHICHTHECOMPANYANDITSSTAKEHOLDERSCANCOMETOGETHER 4HEWAYINWHICHA#32PROJECTWASCOMMUNICATEDACROSSDIFFERENTCONTEXTSAND DIFFERENTAUDIENCESINDICATEDHOW#32COULDHELPINCREATING@AREASOFCOMMON GROUNDHENCESERVINGASASTABILIZINGMECHANISM3PECIlCALLY)OBSERVEDTHAT#32 MANAGERSMAYUSETHESAME#32PROJECTACROSSDIFFERENTCONTEXTSINTERPRETINGIT INDIFFERENTWAYSACCORDINGTOTHEAUDIENCESWHOMTHEYWANTEDTOBUYINTOTHE IDEAOF#32&ORINSTANCE54),DEVELOPEDASMALL#32PROJECTWHICHWASTHEN USEDBYTHE#32TEAMASANEXAMPLEOFTHECOMPANYS#32EFFORTSDEPENDING UPONTHETARGETAUDIENCESPECIlCELEMENTSOFTHEPROJECTWOULDBEHIGHLIGHTED 7HENTHIS#32PROJECTWASPRESENTEDTO54),SPARENTCOMPANYTHE#32TEAM HIGHLIGHTEDTHEWAYINWHICHTHISPROJECTHADBROUGHTPOSITIVEPUBLICITYTOTHE
COMPANY4HEREFORETHE#32TEAMUSEDTHISEXAMPLETOJUSTIFYTHERESOURCES PUTINTO#32PROJECTS)NTHISWAYTHE#32PROJECTBECAMEAPOTENTIALPLATFORM FORCOMMONGROUNDBETWEENTHE#32TEAMANDTHEPARENTCOMPANY/NTHE OTHERHANDTHESAMEPROJECTWASUSEDIN54),SEXTERNALPUBLICATIONSTOSIGNAL TOEXTERNALSTAKEHOLDERSTHAT54),ISARESPONSIBLECOMPANY)NTHATCASETHE PROJECTSERVEDASAPOTENTIALPLATFORMFORCOMMONGROUNDBETWEENTHECOMPANY ANDITSEXTERNALSTAKEHOLDERSSOMEOFWHOMMAYHAVEBEENSCEPTICALABOUTTHE COMPANYSOPERATIONS4HIS#32PROJECTHELPEDTOMITIGATESOMEOFTHISSCEPTICISM ANDHENCEBECAMEAPLATFORMFORSTABILIZATION4HECUSTOMIZATIONOFTHEPROJECT TODIFFERENTAUDIENCESALLOWEDTHE#32TEAMTODERIVETHEMAXIMUMSTABILIZATION IMPACTINEACHCASEDEPENDINGUPONTHETARGETAUDIENCE
CSR as a destabilizing mechanism? $ELVINGINTOMOREDETAILWITHINEACHOFTHEORGANIZATIONSTHEREISCLEAREVIDENCE THAT#32SERVESASASTABILIZINGMECHANISMBOTHINTERNALLYANDEXTERNALLY(OWEVER )ALSOFOUNDTHATSURPRISINGLY#32MAYBECOMEADESTABILIZINGMECHANISM4HE EVIDENCESUGGESTSTHATTHISISBECAUSE
s #32IMPLEMENTATIONSERVESASANIDIOSYNCRATICCHANGEAGENTTHATCANALTERTHE BALANCESOFPOWERWITHINANORGANIZATION
s 7HEN#32ISNOTEFFECTIVELYCOMMUNICATEDTHE#32IMPLEMENTATIONMAY ENDUPDESTABILIZINGRATHERTHANSTABILIZING THEENVIRONMENTINWHICHA COMPANYOPERATES
4HESEPOINTSAREEXPLAINEDBELOW )NONEOFTHETWOCASESWHICHFORCONlDENTIALITYREASONSCANNOTBEIDENTIlED
THEREWERECLEARINSTANCESTHAT#32SERVEDASADESTABILIZINGFUNCTIONINTERNALLY) FOUNDTHAT#32PRACTICESANDTHECOMPANYSACTIVEENGAGEMENTIN#32PROJECTS HADTRIGGEREDPOLITICALCONTROVERSIESAMONGDEPARTMENTSTHATWEREOPPOSEDTO#32 &ORINSTANCEAMANAGEROFONESUCHDEPARTMENTSUGGESTEDTHATTHEINTRODUCTION OF#32HADUNSETTLEDTHEINTERNALDYNAMICSOFTHECOMPANY
4HISEXAMPLEILLUSTRATESTHATTHEINTRODUCTIONOF#32HADUNSETTLEDTHEPOLITICAL BALANCESWITHINTHISORGANIZATION-ANAGERSOFTHISINTERVIEWEESDEPARTMENT ARGUEDTHATSINCEITSESTABLISHMENTTHE#32DEPARTMENTHADBEENTAKINGMUCH
OFTHECREDITFORTHEWORKTHATTHEYINTHElRSTDEPARTMENTHADBEENDOING4HE FOLLOWINGQUOTEFROMONEOFTHATDEPARTMENTSMANAGERSILLUSTRATESTHIS
4HISSITUATIONLEDTOCONTROVERSIESBETWEENTHEDEPARTMENTSWHICHHAVEASTAKEIN THERESOURCESDEDICATEDTOTHECOMPANYS#32EFFORTS(OWEVERITISPARTICULARLY INTERESTINGTONOTETHATTHECONTROVERSYWASNOTOVERWHETHER#32WASSOMETHING GOODTOHAVEBUTOVERTHEWAYINWHICH#32WASBEINGIMPLEMENTED)NOTHER WORDSTHEDESTABILIZINGEFFECTSOF#32WEREATTRIBUTEDTOITSROLEASACHANGEAGENT CHALLENGINGTHEWAYINWHICHTHECOMPANYHADBEENOPERATINGNOTTOTHEIDEAOF #32PERSE)TCANBEARGUEDTHATTHISCONSTITUTESAPOSITIVECHANGESINCEITSIGNIlES THAT#32HAD@UNFROZENTHEORGANIZATIONALSYSTEM(OWEVERDELVINGFURTHERIN THEDATA)CONCLUDEDTHATTHEDESTABILIZATIONHADMUCHDEEPERROOTSTHANASIMPLE DEPARTMENTALRIVALRY4HESEFRICTIONSAPPEAREDBETWEENSEVERALDEPARTMENTSAND THE#32DEPARTMENTBECAUSETHE#32DEPARTMENTANDTHETOPLEADERSHIPDID NOTPROVIDEEFFECTIVEJUSTIlCATIONSFORTHEIRCHOICEOF#32PROJECTSSEE#HAPTER INTHISBOOKFORACRITICALASSESSMENTOFFAIRNESSINSUCHPROCESSES )NOTHER WORDSASIGNIlCANTPARTOFTHEORGANIZATIONHADNOTBOUGHTINTOTHEMANNERIN WHICHTHECOMPANYDECIDEDTOIMPLEMENT#32nHENCETENSIONSAROSE4HE FOLLOWINGQUOTEFROMAMANAGEROFA @NEUTRALDEPARTMENTIEONEWHOWAS NEITHERFORORAGAINSTTHE#32DEPARTMENT ILLUSTRATESTHISPOINTANDINDICATES THATTHEDESTABILIZATIONEFFECTSOFINTRODUCING#32CANNOTSIMPLYBEATTRIBUTED TOORGANIZATIONALPOLITICS
4HISOBSERVATIONINDICATESTHATTHEEXTENTTOWHICH#32SERVESASASTABILIZINGOR ADESTABILIZINGMECHANISMMAYDEPENDUPON
s THETYPEOF#32STRATEGIESADOPTEDBYTHECOMPANYAND s THEEXTENTTOWHICHTHEVALUEOF#32ANDTHEREASONSBEHINDTHESELECTION OFSPECIlC#32ACTIVITIESOVEROTHERSAREADEQUATELYCOMMUNICATEDACROSS THECOMPANYANDEXTERNALLYINORDERTOSECURE#32BUY INANDMINIMIZE FRICTIONS
4HESElNDINGSSUGGESTTHATTURBULENCEMAYBEMITIGATEDWITHTHEHELPOF#32 (OWEVERTHEOPPOSITEMAYHAPPENIF#32ISNOTIMPLEMENTEDEFFECTIVELY7ITHIN SUCHACONTEXTTHEMANAGINGOFTHERELATIONSHIPSOFTHECOMPANYWITHITSVARIOUS STAKEHOLDERSEMERGESASKEY )NDEED0OSTETALP DElNETHECORPORATIONASACOLLABORATIONOFMULTIPLE
ANDDIVERSESTAKEHOLDERSANDARGUETHAT@ORGANIZATIONALWEALTHCANBECREATEDOR DESTROYED THROUGHRELATIONSHIPSWITHSTAKEHOLDERSOFALLKIND4HEAUTHORSARGUE THATEFFECTIVESTAKEHOLDERMANAGEMENTINTHESENSEOF@MANAGINGRELATIONSHIPSWITH STAKEHOLDERSFORMUTUALBENElTISACRITICALREQUIREMENTFORCORPORATESUCCESS 0OSTETALPITALICSINORIGINAL #URRENTRESEARCHINDICATESTHATEFFECTIVE STAKEHOLDERMANAGEMENTALSOREQUIRESHIGH QUALITYORGANIZATIONALCOMMUNICATION AND#32EDUCATIONTOENSURETHAT#32PLAYSAPOSITIVESTABILIZINGROLE#32AND PARTICULARLYSTAKEHOLDERENGAGEMENTPRACTICESCANSERVEASAPLATFORMFORCOMMON GROUNDWHEREORGANIZATIONSANDTHEIRSTAKEHOLDERSMEETANDSEEKTOIDENTIFY WINnWINSOLUTIONSSOTHATBOTHCORPORATEOBJECTIVESANDSOCIETALEXPECTATIONSARE MET(OWEVERTHEINABILITYORUNWILLINGNESSBYONEORBOTHPARTIESTOENGAGE INSUCHADISCUSSIONORAPROBLEMATIC#32COMMUNICATIONCANWIDENTHEGAP BETWEENTHOSEINVOLVED#ONSEQUENTLYORGANIZATIONSCANBECOMEMISALIGNED FROMTHEIREXTERNALENVIRONMENT4HISDISJUNCTUREMAKESTHEENVIRONMENTIN WHICHORGANIZATIONSOPERATEMOREUNCERTAIN4HISSITUATIONISNOTUNCOMMONAND WASOBSERVEDTOSOMEEXTENTINBOTHORGANIZATIONSUNDERSTUDY #AN#32 RELATEDSCENARIOPLANNINGHELP#ANTHISCOMMONMISALIGNMENT
BETWEENACOMPANYANDITSSTAKEHOLDERENVIRONMENTBEPREVENTED#ANTHE DEVELOPMENTOF#32 RELATED SCENARIOS SERVEASAMEANSOF SHAPINGA SHARED CONTEXTBETWEENTHECOMPANYANDITSSTAKEHOLDERSANDTHEREBYHELPINIDENTIFYING ACOMMONGROUNDINCONDITIONSOFTURBULENTENVIRONMENTS 7ATKINSAND"AZERMAN EXAMINEDDISASTROUSEVENTSTHATHAPPENED
DESPITE THE FACT THATCORPORATIONSCOULDANDSHOULDHAVESEENTHEMCOMING IE@PREDICTABLESURPRISESORWHAT3CHWARTZ CALLED@INEVITABLESURPRISES 4HEAUTHORSFOUNDTHATTHESETAKEPLACEDUETOONEORACOMBINATIONOFTHREE CAUSESPSYCHOLOGICALIECOGNITIVEDEFECTSOFTHEDECISION MAKERS ORGANIZATIONAL IEBARRIERS INTERNAL TO THEORGANIZATION THAT IMPEDE COMMUNICATION AND POLITICALIEDECISION MAKINGmAWS 4HEYCONCLUDETHATSCENARIOPLANNINGIN COMBINATIONWITHRISKASSESSMENT CANHELPCOMPANIESTOAVOIDTHESEPREDICTABLE SURPRISES)F7ATKINSAND"AZERMANS OBSERVATIONSAREJUXTAPOSEDWITHTHE CASE)HAVEPRESENTEDWHERETHE#32IMPLEMENTATIONBECAMEADESTABILIZING MECHANISMATLEASTTWOOFTHETHREECAUSESLEADINGTOPREDICTABLESURPRISESCAN BEIDENTIlEDnNAMELYORGANIZATIONALIEPOORJUSTIlCATIONOF#32CHOICESAND INEFFECTIVEBUY INTOTHE#32EFFORTS ANDPOLITICALIEDEPARTMENTALCONmICTS
LEADINGTOINTRA ORGANIZATIONALFRICTIONS CAUSESARECLEARLYEVIDENTWITHINTHIS ORGANIZATION 4HIS IMPLIES THAT THIS COMPANY BECAUSE IT IS OPERATING IN A TURBULENT
ENVIRONMENTMAYSOONFACEPREDICTABLEORINEVITABLESURPRISESINITS#32ARENA 4HECOMPANYISlNDINGITSELFINASITUATIONWHERE#32ENGAGEMENTDESTABILIZES RATHERTHANSTABILIZESITSENVIRONMENT)ARGUETHATTHISCOULDHAVEBEENAVOIDED IF#32 RELATED SCENARIOPLANNINGHADBEENUNDERTAKENBEFORE THECOMPANY EMBARKEDONITSIMPLEMENTATIONOF#32)FITHADTHENTHECOMPANYWOULD HAVEBEENBETTERPREPAREDFOROREVENARRESTEDTHECONTENTIOUSSITUATIONTHAT AROSEDURINGTHISIMPLEMENTATION)NOTHERWORDSSCENARIOSWOULDATTENDTOTHE PSYCHOLOGICALCAUSE7ACKS@MICROCOSMDISCUSSEDIN#HAPTEROFTHISVOLUME 'OINGFORWARDSCENARIOPLANNINGnANDESPECIALLYTHE @EGALITARIANSCENARIOS PROPOSEDBY%LKINGTONAND4RISOGLIO nCOULDHELPTHECOMPANYTOOPEN UPITSPERCEPTIONOFPOSSIBLEFUTURESANDHENCEBEBETTERPREPAREDINTHEEVENT THATSURPRISESARISEAGAIN4HISSUPPORTSTHEADVOCATESOFSCENARIOPLANNINGWHO CLAIMTHATEVERYORGANIZATIONCANBETTERUNDERSTANDITSPASTANDPRESENTANDSENSE THESIGNSOFFUTURECHANGETHATWOULDLATEREMERGEINITSENVIRONMENT-OREOVER -EDJADAND2AM¤REZ HAVESUGGESTEDEXPLICITLYTHATUSINGSCENARIOSMIGHT BENElTTHELEGALISTICTHINKINGTHATISOFTENPRESENTIN#32 #32 RELATEDSCENARIOPLANNINGCANBEVALUABLENOTONLYTOORGANIZATIONSTHAT
HAVEADOPTED#32PRACTICESFORSOMETIMEBUTALSOTOCOMPANIESSUCHAS54), AND4/" WHICHARENEWTOTHISlELD&ORINSTANCEASDISCUSSEDTHE4/"ENDEDUP BECOMINGISOLATEDFROMITSEXTERNALENVIRONMENTBYADOPTINGADEFENSIVEATTITUDE TOWARDSTHECRITICISMITHADBEENRECEIVINGFROMHOSTILESTAKEHOLDERS(OWEVER THE4/"MIGHTHAVEIDENTIlEDTHEPOSSIBLEFUTUREOF@ISOLATIONEARLIERIFITHAD ACTIVELYUSEDSCENARIOPLANNINGANDEXPLOREDWAYSINWHICHTOAVOIDREACHING ASTATEOFISOLATION!SCENARIOEXERCISECOULDHAVESURFACEDTHELATENTHOSTILITY EARLIERENABLINGTOPMANAGEMENTANDTHEPUBLICRELATIONSDEPARTMENTTOPREPARE FORITORDEmECTITBETTERSEE#HAPTERINTHISVOLUMEONHOWSCENARIOSCANINITIATE ANDSUSTAINADIFlCULTSTRATEGICCONVERSATIONAMONGDIVERSESTAKEHOLDERS ! SIMILAR CONCLUSION COULD BE DRAWN ABOUT THE VALUE OF#32 SCENARIO
PLANNINGINTHEPUBLIC SERVICEUTILITY#32 RELATEDSCENARIOPLANNINGCOULDCLEARLY HAVEHELPED54),TOPERCEIVEITSPOSSIBLEFUTURESANDBETTERPREPAREITSELFFOR THECHALLENGESITNOWFACES4HECOMPANYSPRIVATIZATIONANDACQUISITIONBYA CONGLOMERATEISASCENARIOTHATASCENARIO PLANNINGEXERCISEMIGHTHAVEFORESEEN WHEN54),WASSTILLASTATE OWNEDENTERPRISE3CENARIOPLANNINGWOULDHAVEBEEN EQUALLYUSEFULWITHREGARDTOWHATROLE54),COULDORSHOULDHAVEPLAYEDAND CANPLAYINTHEFUTURE WITHINTHESENSITIVECONTEXTOFPUBLICSERVICE RELATEDISSUES #HAPTERSANDINTHISVOLUMETOUCHONTHESEISSUES )SUGGESTTHATTHELACK OFSCENARIOPLANNINGONTHOSEISSUESCONTRIBUTEDTOINCREASEDCOMPLEXITYAND HENCEMOREENVIRONMENTALTURBULENCEWHICHCOULDHAVEBEENMITIGATEDTHROUGH #32 RELATEDSCENARIOPLANNING
0HELPSETALS EXPLORATORYSTUDYISALSOPERTINENTTOTHISDISCUSSION SINCEITEXAMINEDTHEVALUEOFSCENARIOPLANNINGINONEOFTHE5+SPUBLIC SERVICE INDUSTRIESnWATERINPARTICULAR3PECIlCALLYTHEAUTHORSOBSERVEDTHATSCENARIO PLANNINGCONTRIBUTEDTOIMPROVEDlNANCIALPERFORMANCEASMEASUREDBOTHBY SERVICELEVELANDBYlNANCIALRETURN BUTINTERESTINGLYWORSENEDCUSTOMERSERVICE LEVELS4HEAUTHORSATTRIBUTEDTHELATTERTOTHEWATERINDUSTRYSQUASI MONOPOLISTIC STRUCTURE 4HESEVERALEXAMPLESANDTHEDISCUSSIONINTHISCHAPTERHAVESHOWNHOW#32
PRACTICECANBEENHANCEDWITHTHEHELPOFSCENARIOS,OOKINGATTHISPERSPECTIVE WITHINTHE#32CONTEXTITALSOBECOMESCLEARTHATTHEOPPOSITEMAYAPPLYnTHAT ISSCENARIOPRACTICEMAYBEENHANCEDBYEXPLICITLYINCLUDING#32PRINCIPLESAND CONSIDERATIONSSEE#HAPTERSAND 3TAKEHOLDERENGAGEMENTCANBEAKEY ASPECTOFMOREEFFECTIVE#32PRACTICEASTHECASEOFTHE4/"INDICATED4HEABILITY TOCOMMUNICATEWITHSTAKEHOLDERSGAUGETHEIREXPECTATIONSANDDISCUSSHOWAND WHETHERTHECOMPANYCANADDRESSSOMEORALLOFTHESEEXPECTATIONSISAVALUABLE TOOLINTHEHANDSOFDECISION MAKERSNOTONLYWITHREGARDTOTHESHORT TERM DAY TO DAYISSUESOFTHECOMPANYBUTALSOFORITSLONG TERMSTRATEGICPLANNING 4HISISALIGNEDWITH3TORMERS SUGGESTIONFORTHEROLETHATSTAKEHOLDERSCAN POTENTIALLYPLAYAS@AUTHENTICCRITICSINTHESCENARIO PLANNINGPROCESS#32INTHE FORMOFSTAKEHOLDERENGAGEMENTPRACTICESCANBECOMETHEBASISFORDEVELOPING MOREEFFECTIVESCENARIOSANDALSOFORREGULARTESTINGOFTHESESCENARIOSTOENSURE THAT THEY CANBESTPREPARE THEORGANIZATION FOR ITSUNCERTAIN FUTURES 4HE ENGAGEMENTOFSTAKEHOLDERSMIGHTENABLETHISTOHAPPENMOREEASILYnASLONGAS THESTAKEHOLDERSARENOTCO OPTEDINTOTHECOMPANYSPERSPECTIVEORTHEYWOULD LOSETHEIRCAPACITYTOBEAUTHENTICCRITICS /VERALLSCENARIOPLANNINGCANBEASUSEFULTO#32PRACTICESAS#32PRACTICES
ARE TO SCENARIO PLANNING#32 AND THEDEVELOPMENT OF#32 SCENARIOS CAN CONTRIBUTETOTHEDEVELOPMENTOFCONTROLMECHANISMSWITHINTURBULENTlELDS ANDWHEREAPPLICABLEPREVENTTHEACCELERATIONOFTURBULENCE(OWEVERALLOF THISEFFORTWILLBEINEFFECTIVEIFTHEORGANIZATIONISNOTFULLYCOMMITTEDANDREADY TOTAKESTOCKOFTHELESSONSTHATTHESCENARIO PLANNINGPROCESSOFFERS-ERCER NOTESTHATAKEYPREREQUISITEFORSCENARIOPLANNINGTOBESUCCESSFULISAN ORGANIZATIONALCULTURETHATENCOURAGESMAKINGTHEMOSTOFTHESCENARIO PLANNING PROCESSSOTHATTHISPROCESSTHRIVESANDPOSITIVELYIMPACTSUPONTHECOMPANYS STRATEGYINTHELONGRUN4HISMIGHTENTAILTHEPROMOTIONOFTHEROLEOF@AUTHENTIC CRITICSINTHESCENARIO PLANNINGPROCESSASDISCUSSEDABOVEASANINTEGRALPART OFTHEORGANIZATIONALCULTURE!S7ACKP HASELOQUENTLYEXPLAINED@A WILLINGNESSTOFACEUNCERTAINTYANDTOUNDERSTANDTHEFORCESDRIVINGITREQUIRESAN ALMOSTREVOLUTIONARYTRANSFORMATIONINALARGEORGANIZATION4HISTRANSFORMATION ISASIMPORTANTASTHEDEVELOPMENTOFTHESCENARIOSTHEMSELVES #ONSIDERINGTHISDISCUSSION)BELIEVETHAT54),ANDTHE4/"WOULDBE
WELLSERVEDINADDING#32 BASEDSCENARIOPLANNINGTOTHEIRREPERTOIREOF#32 INITIATIVES
