Stakeholder objectives
Both internal and external stakeholders can have different objectives. Businesses must take stakeholder’s objectives into consideration as they may have positive or negative impacts on operations. When there are major differences in objectives, these can lead to stakeholder conflict. Some stakeholders have the following objectives:
- Owners / Shareholders: Gain profit from establishing or investing in the business. They may also want to expand to to gain further profit potential. Shareholders are likely to want an increase in dividends.
- Managers: Reinvest the profit back into the business. They are responsible for the business operating successfully.
- Employees: Will want higher salaries or wages with better working conditions. They will also want to know they will not lose their jobs (job security) and have chance for further development in the organisation through training or promotion.
- Customers: Usually want better quality products at lower prices.
- Suppliers: Will want their business customers to repay quickly if they have sold their products to them with trade credit conditions.
- Lenders / Creditors / Banks: Want their loans to be paid back on time.
- The government: Will want businesses to pay taxes.
- Local community: Will want the local area to be protected. They will also want long-term investment in the area. Finally, they will also want businesses to actively support the community, for example, through sponsorship.
- Pressure groups: They will want businesses to adjust their operations to fit in with their worldview and actions.
How different objectives can lead to stakeholder conflict
The impact stakeholder conflict can have on business decision making
Video: The impacts of stakeholder conflicts
Why are Amazon employees striking for the first time in the UK?
They are asking for a 50% raise to £15 per hour. The employees believe it will not impact Amazon, and will bring the money back into the economy (as employees spend it).
What other stakeholders are being impacted as some of the employees go on strike?
Other employees trying to enter into the Amazon facilities (feeling of discomfort, unease, which could impact productivity), customers (may receive late shipments), delivery personnel (might not deliver packages on time), Amazon (loss of reputation and potentially profit), politicians are beginning to view Amazon unfavourably.
Thinking for yourself: What do you think Amazon should do?