https://youtu.

be/tZGol4xtY3g - Watch this 11-

minute video to recap your knowledge and
understanding of internal and external
stakeholders, their objectives, and managing
stakeholder conflicts.
Q. Consider the situation of conflict between stakeholders and
suggest a method to resolve the conflict. Justify your choice.

1) Employees vs. Management:

Issue: Disagreements over compensation, working conditions, or
organizational policies.
Example: Employees demand higher wages or better benefits, while
management prioritizes cost-cutting measures
Ans- The shareholders and employees need to compromise in this situation.
Shareholders can provide higher wages but in return the employees must work
for longer hours to compensate. Companies can also offer their shares at a
discounted price for the employees due to which employees can benefit from
the growth of the company. This will motivate the employees to work
productively for longer hours.

2) Customers vs. Shareholders:

Issue: Balancing customer satisfaction with shareholder value.
Example: Shareholders pressuring for cost-cutting measures that
might compromise product quality or customer service.
Ans – This disagreement can be resolved by offering employees profit based
pay according to which, as the employees perform productively and improve
their efficiency leading to increased revenue of the company, they get a share of
the additional profits. This will help the company reduce their costs while also
providing quality food and customer service to their customers.
3. Local Communities vs. Corporate Expansion:
Issue: Disputes over the impact of corporate activities on local
communities.
Example: Residents protesting against the construction of a new
facility due to concerns about environmental impact or increased
traffic.
Ans – The company should use public media to spread positive news
about the company and also allow the communities to know the
details of the changes or expansion to clear any miscommunication.
Companies can also donate to local communities, work with a charity
or adopt eco-friendly methods within the organisation to satisfy the
communities and expand.