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Management article
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Reference no. ART-2819-E
Published by:
IESE Business School (2016)
 
in "IESE Insight"
Length:
8 pages

Abstract

Engaging with your external stakeholders is an essential means by which companies not only reduce risk and preempt future crises, but also generate value for shareholders and society alike. So why do executives appear to ignore 'corporate diplomacy,' which in many ways is one of the best resources in the executive toolkit to help manage risk effectively? Drawing on his DIPLOMat framework, the author answers this question by showing the myriad ways that executives are frequently stymied in their efforts to maximize their stakeholder potential. He sketches out the 12 biggest risks to avoid. By identifying the main risks in the stakeholder environment, executives can mitigate their adverse impacts and seize their upside opportunity.

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