Chapter Two:
Managing Public Issues and
Stakeholder Relationships
Public Issues
, Public Issues: Any issue that is of mutual concern to an organisation and one or more of its
stakeholders. (Also called social issues or socio-political issues).
Public Issues are broad issues and impact many companies and groups, and of concern to a
significant number of people.
Public issues are often contentious- different people have different opinions on what
should be done about the problem. They often, but not always, have public policy or
legislative implications.
The emergence of a new public issue often indicates there is a gap between what the firm
wants to do or is doing and what stakeholders expect. -performance-expectation gap.
The Performance-expectation gap
Emerging public issues are both an opportunity and a risk. On one hand, correctly anticipating
the emergence of a public issue can confer a competitive advantage. However, they are a risk
because issues that firms do not anticipate and plan for effectively can seriously hurt a company.
Examples of Types of Public Issues:
o Sexual Harassment
o Consumer Safety
o Protection of personal information
Environmental Analysis
Managing Public Issues and
Stakeholder Relationships
Public Issues
, Public Issues: Any issue that is of mutual concern to an organisation and one or more of its
stakeholders. (Also called social issues or socio-political issues).
Public Issues are broad issues and impact many companies and groups, and of concern to a
significant number of people.
Public issues are often contentious- different people have different opinions on what
should be done about the problem. They often, but not always, have public policy or
legislative implications.
The emergence of a new public issue often indicates there is a gap between what the firm
wants to do or is doing and what stakeholders expect. -performance-expectation gap.
The Performance-expectation gap
Emerging public issues are both an opportunity and a risk. On one hand, correctly anticipating
the emergence of a public issue can confer a competitive advantage. However, they are a risk
because issues that firms do not anticipate and plan for effectively can seriously hurt a company.
Examples of Types of Public Issues:
o Sexual Harassment
o Consumer Safety
o Protection of personal information
Environmental Analysis
