Question

Explain the conflicting needs of the stakeholders of a company.

Answer 1

The needs and expectations of different stakeholders can conflict. For example, when the prices of raw materials and the wages of workers increase, the cost of production goes up. The company has to increase product prices, as otherwise, it may not be able to maintain returns to shareholders. But customers expect prices to remain constant, and workers demand an increase in wages. Management of a company has to maintain a balance between the needs and expectations of various Stakeholders.