1.6 stakeholder conflicts

Question 1

employee + management

Answer 1

• clash over the use of profit within the company
  employees want the profit to increase their wages whilst management prefer to increase their own salaries or reinvest the money into growing the business

Question 2

customers and shareholders

Answer 2

• customers want the lowest price possible for their goods and services which means profit margin of a company will be lower.
• shareholders want dividends to be high as possible meaning profits need to be high as possible (higher prices for customers)

Question 3

management and general community

Answer 3

management might decide to cut costs by neglecting maintenance which could put members of community in danger

Question 4

management and supplier

Answer 4

management want costs to stay low to improve profit but suppliers provide ethical materials meaning their require higher prices to cover these costs