Studied by 2 peopleemployees 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
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Flashcard