ENGAGEMENT OF STAKEHOLDERS FOR SUCCESSFUL PROJECT MANAGEMENT

Abstract

The balance of interests determines the effective participation of all interested parties in the company's activities. Ignoring the interests of any group of stakeholders and the imbalance of their claims can have adverse consequences for the company, such as the loss of capable and efficient employees, capital outflow, and reduced support of shareholders (participants), which will ultimately lead to a deterioration of its financial position and image. Stakeholder management is the process of analyzing and coordinating interests for the enterprise's long-term development. It is also a process of interaction (communication) of the company with stakeholders, which allows it to consult, inform, and explain to all interested parties the implementation of strategic plans and their significance for all its participants.

Companies comprise the economic, social, natural, and information environment. In this regard, business strategies affect many people, institutions, and organizations, which are usually stakeholders. Different groups of stakeholders have other priorities, considering their interests, which are related to profits, dividends, wages, working conditions, training and career opportunities, mutually beneficial partnerships, attracting investments, financial support of the business community and the state, loyalty, with environmental protection, ethical and moral problems, etc. Stakeholder management is, therefore, critical to business, especially when making strategic decisions. The principle of effective management is the consistency (balance) of the economic interests of various interested parties. A conflict of interest occurs when the aspirations and efforts to satisfy one stakeholder group's needs jeopardize others' expectations and plans. Stakeholder management is the process of analyzing and coordinating interests to determine the most consistent solutions for the long-term and sustainable development of the enterprise. It is also a communication process that allows you to consult, inform, and explain to all interested parties the company's planned and implemented strategic decisions and their meaning for each of their representatives.