How Different Stakeholder Groups Interact

NotesQuiz

STAKEHOLDER GROUPS

The needs/expectations of the different stakeholders may conflict.

Some of the typical conflicts are shown below:

Stakeholders Conflict
Employees versus Managers Wages versus Bonus (cost efficiency)
Customers versus Shareholders Quality versus Profit/dividend
General Public versus Shareholders Environment versus Profit/dividend

Common Examples

  1. Managers prefer short-term decisions which bring them short-term profit (bonuses)

    however 

    Shareholders prefer Long-term decisions which bring them return in long-term.

  2. Business expansion may require additional share issues or loans, which will reduce financial independence

NotesQuiz