Conflicts Between Stakeholders

Having identified the main responsibilities the business has to each stakeholder, see if you can work out where conflicts might arise. These conflicts will arise when the interests of one stakeholder group are opposite to that of another stakeholder group.

Employers seeking higher wages might conflict with the desire by management to cut costs to boost profit and thus satisfy their own ambitions and meet the needs of the shareholders.

Image: A business's actions have an effect on more than just its customers and owners. It has responsibilities - for example, to dispose of waste products properly and not just dump waste in rivers and the sea or pollute the atmosphere. Copyright: Ken Kiser, stock.xchng

Task

In the table below, you are given various scenarios that might face any business. Cut out each scenario. Make sure that you understand what the scenario means in each case. Working in groups, match up the scenario with the stakeholder/s that you think might be affected.

Using the form supplied here, write a short explanation why and how you think that the stakeholder/s you have identified are affected.

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Scenarios

The business has decided to use cheaper labour abroad and move its production facilities to China.

The business has been charged over dumping waste into a local river, causing death to marine life.

The business's profits before tax have jumped by 25% over the year.

Managers at the firm have been accused of agreeing to salary and bonus packages that are not matched by the performance of the business.

The business has decided to increase the length of time that it takes to pay its bills by 30 days, thus improving its cash flow position.

The business operates in a competitive environment and is resisting attempts by trade unions to increase wages by 2% above the rate of inflation.

As part of the business's expansion plan, a new playing field is being provided half a mile from an existing field, where the expansion will occur.

Employees have expressed concern that health and safety measures at the business have been weakened in an attempt to cut costs.

A key supplier to the business has been reported in the press to be polluting land in a part of southern Africa where it operates.

The business has an excellent reputation for its environmental policy but this means prices are generally 10% higher than its competitors.

Stakeholders

These cut-outs are available on a separate, printable page here. (http:www.bized.co.uk/educators/level2/busactivity/activity/knowing15.htm)

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