Types of Stakeholders

1. Customers
2. Employees
3. Investors
4. Suppliers and Vendors
5. Communities
6. Governments

Conflicts
 When stakeholders want different outcomes from a business activity and are unable to
meet or accomplish their needs or wants, this is referred to as a conflict of interest.
 Each stakeholder has a different interest and the business organization cannot treat all
stakeholders equally
 Therefore, conflicts of interest are inevitable, but the extent to which these conflicts are
allowed to inflict on the interest of stakeholders will be a predicate to the challenges that
the business will have to face.
 Customers are also key stakeholders. Businesses that ignore the concerns of customers find
themselves losing sales to rivals

 In a small business, the most important or primary stakeholders are the owners, staff and
customers. In a large company, shareholders are the primary stakeholders as they can
vote out directors if they believe they are running the business badly.

The major and commonly known conflicts are :

1. Employees versus managers – jobs/wages versus bonus (cost efficiency)

2. Managers versus shareholders – Growth versus independence
3. Customers versus shareholders – Product quality /service levels versus profits profits/dividends
4. General Public versus shareholders – Effect on the environment versus profits/dividends