STAKEHOLDER OBJECTIVES AND POSSIBLE CONFLICTS

Question 1

STAKEHOLDERS’
OBJECTIVES

Answer 1

1. SHAREHOLDERS
   - to obtain a suitable return from
   their investment and to ‘maximize
   their wealth
2. CUSTOMERS
   - satisfaction of customer needs to
   be achieved through the provision
   of value for money products and
   services
3. SUPPLIERS
   - major suppliers to a
   company might have some
   influence over its actions
4. DIRECTORS & MANAGERS
   - individuals whose careers,
   income and personal wealth
   might depend on the company
   they work for
5. SOCIETY
   - issues such as
   business ethics, human rights, the
   protection of the environment and
   avoiding pollution
6. GOVERNMENT
7. FUND PROVIDERS
   - to protect their investment and concern about the ability of the
   company to meet its interest and principal repayment obligations
8. EMPLOYEES
   - receive salary or wages from the
   company and concern about job
   security or career prospects.

Question 2

CONFLICTS BETWEEN
STAKEHOLDERS’ OBJECTIVES

Answer 2

1. Shareholder
   - higher EPS, share price, dividend
2. Customer
   -higher quality & lower prices
3. Citizens/people
   - less pollution & safe environment
4. Manager & s’holder
   - higher production, higher profit, operate 24 hours 3 working shifts
5. Employee
   - higher wages, salary, bonus, perks