Stakeholder Conflict
How the objectives of different stakeholders clash, such as owners wanting profit while employees want higher pay, how much influence each group has, and how to explain a stakeholder conflict clearly.
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Free interactive practice at using the material, which is what the marks are for.
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Same business, different wants
You already know the main stakeholders of a business and what each one wants. The problem is that they cannot all get their way at once. Money paid to one group is money not paid to another, and a decision that pleases owners may anger the local community. This module looks at how these aims clash and who has the power to win.
Conflict words to know
Learn these before you sort the clashes.
Owners against employees
A common clash comes from how the profit is used.
Name both sides, then the clash
In the exam, always name the two stakeholders and the objective each one wants. Then show why giving one group what it asks for leaves the other worse off. Finish by saying which group has the most influence over the final decision, and why. That structure turns a list into a real analysis.
Match the clash
- owners and employees
- local community and owners
- customers and owners
- suppliers and the business
- profit paid out against higher wages
- a quiet clean area against expanding the site
- low prices against a bigger profit
- being paid quickly against delaying payment
Find the conflict
A factory owner wants to keep costs low, but the workers want a pay rise. Why is this a stakeholder conflict?
- The two groups want opposite things and both cannot be fully satisfied.
- Both groups want exactly the same thing.
- Workers are not stakeholders.
- It is against the law to pay workers.
Spot the real conflicts
Select the TWO situations that are genuine stakeholder conflicts.
- Owners want to expand the site, but the local community wants less noise.
- Customers want lower prices, but owners want a bigger profit.
- Owners and employees both want the business to survive.
- Everyone wants the workplace to be safe.
Split the profit
A business makes a profit of 100 units. The owners take 60 units as dividends. Subtract to find how many units are left to spend on higher wages. What is the answer?
Order the answer
Put the steps of explaining a stakeholder conflict in order, earliest first.
- State what the first stakeholder wants
- State what the second stakeholder wants
- Explain why the two aims clash
- Say which group has more influence
Complete the summary
A stakeholder _____ happens when two groups want different things from the same business. Owners often want a large _____ paid out, while employees want higher _____. The group with the most _____ usually gets its way.
Match the influence
- a major customer
- an owner
- the local community
- an employee
- can take its orders elsewhere
- can vote on the big decisions
- can object to planning or protest
- can work harder or go on strike
Spot what upsets the community
Tap the TWO decisions that would most upset the local community.
- run noisy machines late at night
- dump waste near local homes
- raise the pay of workers
- lower the prices for customers
Who is upset?
Read each decision and choose the stakeholder most likely to object.
- A business cuts wages to increase the money paid to owners. Which group is most likely to object?
- A business builds a large noisy warehouse next to houses. Which group is most likely to object?
- A business raises its prices sharply to boost profit. Which group is most likely to object?
Explain a conflict
Explain one conflict between two stakeholders of a business, and say which group is likely to have more influence over the decision.
- Name the two stakeholders and what each one wants
- Explain why the two aims cannot both be fully met
- Say which group has more influence and why