The Importance of Stakeholder Management in CEO Leadership

A chief executive officer’s role entails building and sustaining healthy relationships with the various parties involved in and affected by company decisions. As such, stakeholder management is central to the work of a CEO. Stakeholders in an organization include employees, investors, and the wider community in which the business operates.

To run a business enterprise effectively, CEOs and their teams must maintain open lines of communication. Teams with ineffective communication channels tend to produce less, as they face a lack of trust and low morale. Ineffective communication blurs shareholders’ understanding of the company’s vision. It makes it difficult for them to know whether the promises they received are still on course.

*Originally published at Medium *