Question

Explain the conflicting needs of the stakeholders of a company.

Answer 1

The term 'Stakeholders' implies those individuals, groups and institutions with a stake in the functioning and performance of a commercial organisation or a business enterprise. A person is said to be a stakeholder when that person has an interest in the organisation.

The conflicting needs of the stakeholders of a company are as follows:

1. Owners/shareholders/managers:
   1. safety of capital contributed by them
   2. a fair and regular return (in the form of dividend) on their capital
   3. capital appreciation in the value of their investment
   4. accurate, up-to-date and regular information about the working and financial health of the company
   5. optimum utilisation of available resources
   6. equal participation in policy decisions of the company
   7. a public image of the company for which they can feel proud
2. Employees:
   1. security of the job and continuity of service under congenial conditions.
   2. a fair remuneration in the form of wages and salaries
   3. safe and comfortable working environment
   4. various welfare facilities such as housing, medical care, social security (in the form of pension, gratuity, provident fund, etc.), health, recreation etc.
   5. opportunities for education, self-development, promotion and career growth
   6. opportunity to participate in the profits and management of the organisation
   7. quick and fair redressal of grievances
   8. protection of trade union rights
3. Customers:
   1. Job security and continuity of service in favourable conditions.
   2. Appropriate compensation in the form of earnings and salary.
   3. A safe and comfortable work environment.
   4. Welfare facilities include housing, medical care, social security (e.g. pension, gratuity, provident fund), health, and recreation.
   5. Opportunities for education, self-development, promotion, and career advancement.
   6. Protecting trade union rights.
4. Suppliers:
   1. Reasonable prices for suppliers
   2. Regular and timely payment in accordance with credit terms.
   3. fair terms for delivery and payment
   4. of frequent orders to supply
   5. accurate information regarding the company's financial position
   6. Healthy and cooperative. Inter-business partnership
5. Associates/competitors:
   1. Fairtrade practices for pricing, quality, and service
   2. A climate of healthy competitiveness and ethical behaviour
   3. collaboration among competitors to secure the overall prosperity of the industry
   4. Respect for intellectual property rights.
6. Government:
   1. Comply with country rules and regulations.
   2. Pay taxes on time and honestly.
   3. Avoid bribing public personnel.
   4. Utilise national resources effectively.
   5. Contribute to addressing national issues such as poverty, unemployment, and imbalanced regional growth.
   6. To prevent monopolies and the consolidation of economic power
7. General public/community/society:
   1. Preserve the environment from all forms of contamination.
   2. Create socially attractive products aligned with national interests and priorities.
   3. Prioritising vulnerable groups in employment and other opportunities.
   4. Promote educational, medical, and cultural institutions to enhance people's quality of life.
   5. To provide monies to charity and public welfare causes.
   6. Preserve social and cultural values.
   7. To respect human rights, particularly those of women and children.