A stakeholder is someone who is interested in or affected by what an organization, group, or company does. These include shareholders, employees, and customers. Stakeholders play a role in whether the activities of an organization, group, or company succeed or fail.

Stakeholder Relations is the process of building trust-based relationships between an organization, group or company and its stakeholders through dialogue, credible sources, and relevant experiences.

The Relationship Imperative

Today, communications does not travel vertically. A single source of information no longer exists. The so-called Pyramid of Authority has morphed into a Sphere of Cross influence comprised by many interdependent stakeholders including employees, media, investors, consumers and regulators, among others.Companies must build relationships with all of them.

At the heart of this Relationship Imperative is the need for companies to engage their audiences to talk with one voice to all groups and continually revise messages based on the feedback. This is the only way for companies to establish and maintain strong, healthy corporate reputations, which in turn can influence how their brands are viewed.

Audiences are seeking real connections with companies, whether they are consumers aspiring to certain lifestyles through their purchases, or regulators and NGOs seeking to endorse good environmental practices.

More than any other firm, EON is positioned to help companies master the Relationship Imperative by simultaneously communicating core messages to distinct audiences.

The Pyramid Authority

(Illustration courtesy of www.edelman.com)

The traditional model of communications is the Pyramid of Authority, where companies distribute controlled information through elites (such as experts) to the mass audience. Unfortunately, in a multimedia world where information is not filtered through single sources, this has become outmoded.

Sphere of Cross Influence

(Illustration courtesy of www.edelman.com)

In the Sphere of Cross influence, there are multiple actors, each with real credibility and share of voice. Information pings around in an unpredictable manner: speed-to-market, frequency of interaction, and the credibility  of chosen spokespersons are the keys to success. It is a dynamic environment in which dialogue and quick reaction to information is critical.