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If management sees conflict among stakeholder objectives what should be the best approach?

Answer and explanation

Correct answer: Seek long term balance and fair solution

The direct answer is B, seek long-term balance and a fair solution. Stakeholders may include owners, employees, customers, suppliers, government, creditors and the community. Their interests can differ: owners may want higher profit, employees may want better pay, customers may want lower prices, and the community may expect environmental care. Management should not simply favour the strongest group. Step by step: identify the conflicting interests; understand the needs and likely effects on each group; discuss lawful and practical alternatives; choose a fair solution that supports long-term organisational stability; review the result. Option A is wrong because benefiting only the most powerful party creates unfairness and may damage trust and future performance. Option B is correct because balancing interests and seeking justice is the responsible management approach. Option C is wrong because social objectives are legitimate and should not always be removed; ignoring society can create legal, ethical and reputational problems. Option D is wrong because employees are important stakeholders, and always ignoring them can reduce motivation, productivity and loyalty. A fair balance does not mean giving every stakeholder exactly the same benefit; it means considering legitimate interests without sacrificing long-term sustainability. Memory cue: management coordinates interests; it does not blindly serve one group.

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StakeholdersBalanceConflict

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