1.4 Conflicts between stakeholder interests

employees and owners/shareholders

employees require safe working conditions and reasonable wages, but this may reduce the business’s profit and dividends to owners/shareholders

management and customers

management could attempt to maintain profit and a high dividend to satisfy shareholders by raising the prices of products, but this will upset customers, who expect reasonably priced products

management and the general community

management might decide to cut costs by neglecting maintenance, which could possibly put members of the community in danger

suppliers and the general community

suppliers expect to be paid fairly and promptly, but they might reduce costs by using unethical or socially irresponsible practices, which can upset members of the community

management and suppliers

management wishes to keep costs down to improve profit but suppliers providing ethical materials require higher prices to cover their costs

business owners and customers

if, in searching for greater levels of profitability, the owners of a business decide to increase their prices or find a cheaper supplier to reduce their expenses, this could lead to a conflict occurring with customers who could be unhappy at having to either pay more for the business’s goods or services or pay the same amount for a poorer quality good/service