Max Clarkson, a former faculty member at the University Of Toronto formed these rules about Stakeholder management. The following principles were addressed to the managers specifically:
Clarkson Principle 1
The managers are supposed to acknowledge and carefully monitor the concerns of all the legitimate stakeholders; they must consider their interests seriously in decision-making and actions.
Clarkson Principle 2
The managers must listen and openly corresponds to all the apprehensions with the stakeholders and should communicate about the risk which they assume will happen because of their participation with the corporation.
Clarkson Principle 3
The managers should adopt such practices and modes of behavior that are relevant to the concerns and competencies of each stakeholder’s electorate.
Clarkson Principle 4
The managers should accept the interconnection of hard work and rewards that are being put in amongst the stakeholders. The project managers are supposed to treat the stakeholders fairly.
Clarkson Principle 5
The managers should collaborate with the public and private entities in order to insure the risk that can arise from corporate activities so that can be easily reduced and where they cannot be overcome, and accurately compensate it.
Clarkson Principle 6
Managers should avoid any activities that might endanger undeniable human rights (the right to vote) which may arise some risks if not clearly understood, would be deliberately unacceptable to respective stakeholders. The managers should clearly make outlines to avoid any risk or hurdles.
Clarkson Principle 7
Managers should take notice of the potential conflicts that may possibly occur amongst the staff members for the following reasons a) their role as corporate stakeholders b) Their legal and moral responsibilities for the concerns of all stakeholders through addressing such conflicts with open communication, third party review, accurate reporting etc.
The following principles are classified to address the managers and all those individuals who are responsible for the overall performance and as a result impact on the corporation. These principles are intended to make the managers aware of the various constituencies that they are likely to serve and enhance the openness of management development. By adopting the stakeholder approach to management will help to boost the long term survival growth and success of the organization. The supportive stakeholders on the other hand, encourage trust and arouse joint efforts that may lead to organization‘s wealth that is acquired by mutual familiarity and teamwork.
The managers hold a responsible place within the corporation. They are accountable for negotiating contracts with the organizations intentional constituents and for accommodating the organization’s unintentional stakeholders, in order to make these distinctive individuals and groups into a cooperative workforce and as a result, the severity of unavoidable conflicts might be decreased as well.
Eventually, the managers should implement the following principles of stakeholder’s management as being recommended for general managers. By considering the concerns for stakeholders and treat them fairly, managers are able to create openness and build partnerships. As they work together, the managers and stakeholders are able to determine any risks and contribute rewards. Through a mutual and balanced relationship, the stakeholders of the organization collectively contribute to progress the possibility of project success.