The Effective Balancing Of Stakeholder Interests

2114 Words9 Pages
Question 1
The effective balancing of stakeholder interests requires the identification of various categories of stakeholders and analyzing their expectations and needs from the organization. The basic stakeholders whose needs must be addressed are suppliers, the farmers as customers, the consumers of the foods produced by the farmers that use the Monsanto seeds, the society in which the organization operates in, company employees, shareholders, and investors. Some of the stakeholders falling in the above categories can have interests that conflict with the activities of the company (Ferrell & Hartline, 2012). An example is a case in which shareholders and investors are interested in the growth of profits; thus, showing high support for any profit-generating initiative without considering the impacts on other stakeholders.
Farmers as customers can have interests that vary from those of the shareholders (Ferrell & Hartline, 2012). Their main interest is the reduction of the prices of seeds because this would reduce the cost of production for them. If this interest is adhered to and those of other stakeholders neglected, the shareholder interest of increased profits can be damaged. On the other hand, the key interest of the end consumers is the reduction in the prices of seeds because this is associated with the decline in the cost of food items. Another interest is the safety of the foods for consumption to avoid risking diseases such as cancer and allergic reactions that
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