The importance of stakeholder engagement in managing corporate reputations

Van Zyl, Anria S. (2013-01)

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It is becoming increasingly evident that corporations need to communicate clearly with their larger stakeholder communities’ regarding the risks faced by the corporation along with their strategies to mitigate these risks. Stakeholder communities are also increasingly relying on social media to obtain a better understanding of and to inform others regarding the costs and externalities imposed on them by multinational corporations. The aim of this paper is to highlight the risks posed to corporate reputations by self-organising stakeholder activist groups and how a pro-active inclusive and transparent stakeholder engagement process can counteract these risks.

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