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New Challenges of Economic
and Business Development – 2013
May 9 - 11, 2013, Riga, University of Latvia
Nicola Zech 681
STAKEHOLDER RELATIONSHIP MANAGEMENT
IN THE CONTEXT OF CRISIS MANAGEMENT
Nicola Zech, University of Latvia, Latvia
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Abstract. In an organizational crisis, typically multiple stakeholder groups are
affected and involved – to a varying extent. Stakeholders’ needs and demands have to
be balanced and prioritized wherever applicable. Professional crisis management and
crisis communication may help creating support for and trust in companies by the
complete range of its stakeholders.
This research paper works out key success factors for stakeholder relationship
management in the context of crisis management. Thereby it considers how professional
stakeholder relationship management before, during, and after a crisis helps overcoming
the crisis and reducing its impact. The results base on in-depth literature review. An
introduction of the fundamental concepts of stakeholder management and crisis
management serves as a basis for their consolidation. Practical implication of the paper
is to introduce the stakeholder and stakeholder relationship specifications towards crisis
management in general and crisis communication in specific. The findings will be
converted into instructions for setting up a crisis management plan and corresponding
training plan.
Key words: crisis management, crisis communication, stakeholder management, stakeholder relationship
management
JEL code: M100
Introduction
The modern, more powerful technology has the capacity to transmit crises and disasters increasingly
faster and to a broader audience, especially to the organization’s Stakeholders. As a consequence to the
speed of news spreading, maximum justifiable time of reaction and communication of affected companies
and industries is constantly decreasing. In order to meet the requirements of professional and almost
instant reaction at the same time, applying the most appropriate and effective leadership concept is a
fundamental aspect. However, in acute crisis situations there may be no opportunity to verify the
information available or to seek for further details. Therefore, without professional crisis preparation and
training, decisions may be taken on information without having full confidence in its source or content.
(Cosgrave J., 1996)
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Corresponding author – e-mail address: [email protected], telephone: 0049 89 37066487