Alejandro D.

Chiriboga

Q. Given the objectives of different classes of stakeholders discuss the extent to which conflict may arise between them.
There are two different types of stakeholders, the internal and the external. The internal stakeholders are the managers, shareholders or the employees. The external stakeholders are the suppliers, distributers, customers, unions, society, local community and or the government. Problems between stakeholders may arise because some stakeholder groups compromise to the expectation of others. Also, sometimes a business has to make a choice, or fundamental decisions in which the other stakeholders completely disagree because it produces a conflict for them. Stakeholders are different, and there must be a balance between them. However, there is always contradiction between them. For example, employees require good working conditions, and if they dont get them, they quit the job and the owners are left with no workers. The shareholders expect the business to make a profit and receive a return on their investments, otherwise they would be completely wasting there time. The investors want to be aware of how the company responds to environmental issues before committing into the business. So there is a huge connection between the stakeholders and they all build up the business together. If the company is contaminating allot there will be issues with the rest of the stakeholders because it not only rests their payment but also they will be affected by the strikes, ending up with a terrible reputation. A huge problem that took place between the stakeholders was when the incident of the nuclear power plant in Japan took place. The power plant produces a huge amount of energy to the city, and it, being completely destroyed, will affect tremendously on Japans economy. This then produces contamination. The company gets a huge demand by the government and the local community; its their city after all they have the right to reclaim for what had happened. The investors and the shareholders loose a huge amount of profit and end up with the blame. The customer, in this case the government, the city, is affected not only because of the future lack of energy, but also because of the danger. The power plant had to be prepared for any type of damage. Another huge event that shocked the world and the stakeholders was the event of 911. First of all, the airline, in this case, American airlines, gets their planes with their passengers out of their control into terrorist hands putting in danger to the passengers and the people in the twin towers. So, the costumers, the employees, the society and local communities blame the airlines because of their lack of security and blame the government for not being aware of the situation. The plains crash in the two towers killing allot of people and destroying what was the worlds largest business place. The shareholders and the investors loose huge amounts of money, they get sued by allot of people and their reputation goes directly into the ground. The suppliers stop working, and so do the costumers.

Alejandro D. Chiriboga Nuclear Energy Agency- NEA Fukushima Press Kit. 11 march 2011. Available from: http://www.oecd-nea.org/press/press-kits/fukushima.html Investopedia stakeholder definition: http://www.investopedia.com/terms/s/stakeholder.asp Homeland security affairs-The journal of the naval postgraduate school center for homeland defense and security. Volume II No.1 2006 the disaster after E-911. Available from: http://www.hsaj.org/?fullarticle=2.1.3