The potential for conflict between profit-based (shareholder) and wider objectives (stakeholder) - 3.4.3
Shareholder and Stakeholder objectives can clearly be in conflict, as when wages rise at the expense of lower profits and dividends, organisational growth is at the expense of short-term profits, and expansion of production may cause disruption to the local community.
Additionally, conflict can occur between stakeholders and for a business this can be a hard task to meet all of the needs of the stakeholders. This occurs when the actions or objectives of one group of stakeholders may weaken the power of another. Examples below.
However, stakeholder needs may also overlap in which case they can join together to increase their power, for example the community may support the employees when taking industrial action in order to strengthen their voice.
Additionally, conflict can occur between stakeholders and for a business this can be a hard task to meet all of the needs of the stakeholders. This occurs when the actions or objectives of one group of stakeholders may weaken the power of another. Examples below.
However, stakeholder needs may also overlap in which case they can join together to increase their power, for example the community may support the employees when taking industrial action in order to strengthen their voice.
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