Traditionally, firms have tried to listen to primary stakeholders (e.g., customers, suppliers, creditors, employees) but have paid little attention to the concerns of secondary stakeholders (e.g., the general public, communities, activist groups). This is because primary stakeholders were perceived to have power, legitimacy, and urgency behind their requests, while secondary stakeholders had little or no leverage. With the coming of the Internet and social media this asymmetry of influence has changed. Today, secondary stakeholders have to be managed as adroitly as primary stakeholders. In this installment of Marketing & Technology, we show managers how social media and the Internet have amplified the influence of secondary stakeholders, and offer guidance on how to manage these groups effectively.
Faced with exponential growth and a competitive telecom environment, Bharti looks for ways to better manage its capital expenditures for telecommunications and information technology. One option is to hand over management of its telecom and IT networks to its vendors. Explores the pros and cons of such an outsourcing arrangement for a company in an industry where technological superiority is considered an essential element in competitive strategy.
Faced with falling share prices and the critical eye of the media focused on Jack Welch's retirement plan, newly appointed CEO Jeff Immelt had the challenge of reassessing GE as a leader of corporate integrity and good governance. Presents the changes Immelt initiated in the board of directors, in Immelt's own compensation scheme, and in the compensation scheme for all GE executives, designed to address GE's corporate governance issues. Examines the use of stock options and alternative stock-based incentive schemes, along with the importance of each tool in a total compensation plan. A rewritten version of an earlier case.