Stakeholder Conflict of Interest Perspective Is Everything

Stakeholder Conflict of Interest

Perspective is everything in the business world. In any single business transactions there are many different stakeholders that contribute to the overall process of the interaction. The purpose of this essay is to examine two separate business processes where the interests of two or more stakeholders are in opposition.

According to the World Bank "a stakeholder is any entity with a declared or conceivable interest or stake in a policy concern." Stakeholders are interested parties that perceive a significant impact once a business process is begun, in process or completed. A simple example of conflicting interests among stakeholders deals with public companies and their stockholders. Stockholders provide companies with capitol to invest in order to make their company more profitable. In many instances however, leadership in these types of organizations sets the policies and regulations for how the company operates. Stockholders are usually individuals who are trying to take advantage of a company's business operations as they relate to profit.

If a stockholder, a key stakeholder in a business process, has a personal or political opposition to a company's operations, a conflict of interest may ensue. For example, if a business declares it needs to eliminate many jobs in order to remain profitable, and one of the jobs slated for elimination belongs to a friend or family member, the stockholder may be torn between the emotional price of loss with the material gain of profitability.

Example 2