Unit 1 (I.T.B.M) Topic 4 "Stakeholders" Flashcards
Unit 1 Introduction to Business Management (Done)
How can a conflict arise from stakeholders when changing business objectives or because of the stakeholders’ aims?
*Table 1.4.2
Conflicts may arise when stakeholders have differing aims, making it impossible to satisfy all groups simultaneously. For instance, investors may seek lower costs to boost profits, potentially leading to lower employee pay and local community disruption if the business relocates. Meeting government demands for environmentally friendly practices may increase costs, raising prices for customers.
The impact of decisions on stakeholders depends on circumstances, such as market demand and competitive pricing. New product launches can also create conflicts; while they may benefit shareholders and employees, they could lead to higher prices for consumers and reduced sales for competitors.
As business objectives shift, stakeholder treatment may change. Emphasizing environmental issues can enhance social responsibility, while a focus on profits might lead to cost-cutting in training and development. Managers often struggle to satisfy all stakeholders, especially during significant strategic changes, and may aim to please as many as possible.
