BUSINESS MANAGEMENT AND CHANGE
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RESPONSIBILITY TO STAKEHOLDERS; RECONCILING
CONFLICTS OF INTEREST
Society expects business to accept responsibility and accountability towards
all stakeholders for the promo and management of change
Most enterprises are sensitive to public opinion and strive to be good
corporate citizens. They recognize that their chances for success increase
when they align goals with expectations of all stakeholders.
Responsibilities of management to stakeholders include:
- Managing change:
o The pace of change has increased
o Change must be considered a fundamental aspect of strategic
planning.
o The ability to embrace and adapt to change will determine
competitive advantage
o Principles for effective change management:
 Visionary leadership
 Ability to make hard decisions
 Risk-taking
 Change agents
 Political analysis
 Effective intro of change
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Social justice:
o Refers to areas such as
 Solving pollution problems
 Providing employment
 Preventing discrimination
o Society expects business to use power responsibly and
contribute toward the achievement of social justice goals
o Major recent social justice issues:
 ‘Glass ceiling’
 Unemployment
 Discrimination
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Codes of practice:
o The promo of and respect for all stakeholders with clearly
defined codes of behaviour, and fairness and honesty in all
transactions, will lead to improvements in productivity and
public confidence.
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Ecological sustainability:
o Sustainable development is that which meets the needs of the
present without compromising the abilities of the future
generations to meet theirs.
o The community expects business to adopt greenhouse gas
abatement measures and encourage the development of longterm sustainable strategies.
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Compliance with laws:
o Businesspeople must have a sound understanding of the laws
that will affect their operations and accept and understand
legal responsibilities.
o Some recent legislation that influences management includes:
 Trade practices
 OH&S
 WorkChoices
 Anti-discrimination
RECONCILING CONFLICTS OF INTEREST
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It is almost inevitable that there will b conflicts of interest between
stakeholders.
Some of these expectations are compatible, e.g.:
o Customers want quality for money
o If this expectation is met, sales and profit will increase and
satisfies management
Some aren’t and oppose each other
It is not always easy
Managers have responsibilities to all stakeholders and must develop
skills to negotiate resolutions to any conflicts that arise.