Business Studies – 1.5.2 The role of stakeholder groups | e-Consult
1.5.2 The role of stakeholder groups (1 questions)
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The following table outlines the key objectives of different stakeholders and potential areas of conflict:
| Stakeholder | Key Objectives | Potential Conflicts |
| Shareholders | Maximise profit, increase share value, minimise risk. | Investment in employee training vs. short-term cost savings; environmental protection vs. profit. |
| Employees | Fair wages, job security, good working conditions, opportunities for advancement, work-life balance. | Profit maximisation vs. wage increases; restructuring/layoffs vs. job security. |
| Customers | Good quality products/services, affordable prices, good customer service, convenience, innovation. | Profit maximisation vs. affordable prices; product innovation vs. maintaining existing products. |
| Government | Economic growth, social welfare, environmental protection, fair competition, tax revenue. | Profit maximisation vs. environmental regulations; tax revenue vs. business competitiveness. |
This table demonstrates how the objectives of different stakeholders can sometimes be at odds, requiring businesses to carefully consider the interests of all stakeholders when making decisions.