Which stakeholders must companies satisfy Why is this proces

Which stakeholders must companies satisfy? Why is this process more difficult for companies operating abroad?

Solution

Stakeholders include stockholders, employees, customers, and society at large. In the short term,the aims of these groups conflict.Stockholders want additional sales and increased productivity,which result in higher profits and larger returns going to them. Employees want additional compensation. Customers want lower prices. And society at large would like to see increased corporate taxes or corporate involvement in social functions. In the long term, all of these aimsmust be achieved adequately, or none will be attained at all because each stakeholder group is powerful enough to cause the company\'s demise. Management must be aware of these variousinterests but serve them unevenly at any given period. At one time, gains may go to consumers;at another, to stockholders. Making necessary trade-offs is difficult enough in the domesticenvironment. However, abroad, where corporate managers are not so familiar with customs and power groups, the problem of choosing the best alternative is compounded²particularly if dominant interests differ among countries.