Often in the business workplace opinions and views collide creating conflict within an enterprise. Stakeholders are defined as any group or individual who has an interest in or is effected by the activities of a business. They can be both internal and external and consist of the; Customers, Employees, Management, Owners and shareholders, Local community, Future generations, Suppliers. Conflict is common in all industries but resolving conflict is essential for the longevity of a business. Overcoming conflict will ultimately make a business stronger, more adaptable to its environment.
Some examples of stakeholder conflict includes
• Employees vs managers --> Jobs/Wages vs bonus (cost efficiency)
• Customer Vs Shareholders--> Product quality/ service levels vs profits/dividends
• General Public vs shareholders--> Effect on the environment vs profits/dividends
• Managers vs Shareholders --> independence vs growth
Strategies a manager can use
Managers can undertake a variety of conflict resolution strategies such as:
- 1. Coming to a mutual agreement through negotiation.
- 2. Discussion. Sometimes conflict occurs due to lack of communication, set up a time to talk through the issues
- 3. Written communication. An effective way to break down a conflict if an issue has escalated (or the party involved has a hot temper/ is unwilling to discuss)
- 4. Voting. Allows a conflict to be resolved through the "majority rules" system. effective to solve an issue "once and for all"
Triple bottom line
Also know as the TBL or 3BL is a series of concepts of frameworks that comprise of SOCIAL, ENVIRONMENTAL and FINANCIAL. Many organisations use this framework to evaluate their performance from a broad perspective. (also referred to as people, planet, profit
The original "bottom line" refers to the profit or loss of a business that usually is written at the bottom of a financial statement.
Stakeholder engagement is a key part of corporate social responsibility (CSR) and achieving the triple bottom line. Companies engage their stakeholders in dialogue to find out what social and environmental issues matter most to them about their performance in order to improve decision-making and accountability.