Stakeholder - any person or organisation with a direct interest in, and is affected by, the activities and performance of a business.
Internal Stakeholders - Members of an organisation.
Employees - Concerned with job security and performance-related rewards.
Managers and Directors - Concerned with efficiency of daily operations.
Shareholders - Concerned with financial performance and public reputation of the business.
External Stakeholders - Parties that do not form part of the business but have a direct interest in or involvement in the organisation.
Customers - Concerned with product quality and value.
Suppliers - Concerned with supplying stocks of raw materials, component parts and finished goods needed for production.
Pressure Groups - Concerned with the ethical implications of a business’ actions.
Competitors - Concerned with the financial success of the business.
Government - Concerned with business’ compliance with laws and regulations.
Stakeholder Conflict arises because a business cannot simultaneously meet the wants and needs of groups with varying interests.
Aims and Objectives - The organisation's focus, whether it be on achieving social objectives, on remaining sustainable, or on profit-driven objectives, will direct its conflict resolution process as it steers decision-making towards maximising its reach of its aims and objectives.
Identify Priority Stakeholders - Different businesses will have varying perspectives on the significance of each stakeholder group. For example, a profit-driven business may prioritise the demands of shareholders, social enterprises may prioritise the demands of pressure groups and customers, and a product-oriented business may prioritise the demands of management.
Conciliation and Arbitration - Businesses can employ the services of an independent party to settle a conflict and help the business arrive at a mutually beneficial conclusion.