Conflict of Stakeholders’ Objectives
A business doesn’t run for just one group. Many different people care about the business, and each one wants different things. That’s why managers can’t choose only one objective — they must balance everyone’s expectations.
Stakeholders in the Diagram
From the center outward:
1. Directors / Owners
Want: Growth, higher profits, higher value of the business.
2. Workers
Want: Jobs, job security, good salary, safe working conditions.
3. Local Community
Want: Low pollution, more jobs, businesses that support the society.
4. Consumers
Want: Good price and quality, safe products, reliable service.
Why Is There Conflict?
Because what one stakeholder wants may clash with another’s needs.For example:
If owners focus on growth, they may push workers harder → workers won’t like it.
If consumers want low prices, the company may cut costs → workers get lower pay or the environment gets harmed.
If community wants low pollution, the business must spend more → owners earn less profit.
Managers’ Job
Managers must:
Balance the needs of all groups.
Compromise when objectives clash.
Change objectives depending on the economy.
When economy is good → focus on growth.
When economy is bad → focus on survival (cost cutting).