Chemico

2.1)

Shareholders

As the major stakeholder of the company, shareholders have the largest

interest and influence over the companies decision as they could assert control
of Chemico’s operation by withholding any fundings needed to execute the
proposal. Their main concern would be that of Chemico's performance and its
abilitiy to provide sufficient return on investment. Therefore, they would most
certainly favour the decision that could generate a higher return, regardless of
whether Chemico develops the products in house or by joint venture with a
competitor.

Employees

Given that Chemico is the largest and most important employer in the region,
employees are more likely to stay loyal with the company and support any
decisions that could protect their livelihood as they might not be able to find
alternative job opportunities should they choose to quit. However, given that
there is increased health and safety risk associated with the new product,
employees might hesitate on whether or not to support the decision.

Employees might not have power to resist the proposal individually but if they
were to rally together and form a union, the company might need to take
employee's view into consideration. Consequently, their reaction would depend
on whether Chemico has communicated the planned proposal to their
employees and whether there are any compensations offered by Chemico in
regards to the increased safety and health hazards.

Environmental Campaigners

This group does not really have any power over the company's decision but
they do have high interest in it, especially regarding Chemico’s activities that
could affect the environment. Therefore, these activists may want to gain more
power over Chemico in order to oppose the proposal. This could be achieved
by lodging a report to the authorities and by conducting a demonstration that
would attract media coverage hence bringing attention to the environmental
issues associated with the proposal. However, resistance from this particular
group could be reduced if Chemico could convince them that safeguards are
being put in place to reduce the likelihood of any toxic incidents and that
Chemico is committed in ensuring chemicals are being disposed properly.
Local Residents

The local community would likely support any decision that would sustain
Chemico's business as they provide job opportunities for the locals and help
boost the local economy. However, due to the increased risk of toxic incidents,
locals might resist the proposal as it might affect their health and safety. The
environmental landscape of the surrounding areas might also deteriorate if a
leakage occurs hence adversely affecting the existing lifestyle of locals.

Local Authorities / Government

The government might be conflicted on whether to resist or support Chemico's

proposal. This is because, they would want Chemico to retain its business as
they are the biggest employers in the region. Majority of the government’s plan
might also be funded by the tax income received from Chemico. However, they
would not want to be deemed as supporting the exploitation of employees by
corporations. Therefore, their reaction would depend on whether Chemico
could give assurance that adequate measure have been taken to ensure that
risks are minimised