Explain why there might be conflict between two stakeholder groups of a large mining company.

Mark scheme

Marking points from the official mark scheme (Feb/Mar 2019). The mark or mark type is shown in brackets.

1. Stakeholders are groups / individuals that are affected by and/or have an interest in the operations and objectives of the business. E.g. directors, managers, employees, shareholders, customers, suppliers, competitors, government, local community, pressure groups, media.
2. Different stakeholder objectives – profit, wages, cost reduction, job security, safety, share price, payment, product availability, product quality, product price, environmental impact, local impact, legal issues, tax receipts, job creation, CSR.
3. Mining company – large employer, provides fuel (need), building material, gems, minerals etc. All bought by other businesses and used in consumer products. User of heavy plant and other resources from suppliers. Possibly large / inter-national company with high level of investment in the area. Large profits to tax. Environmental impact likely to be high. Health and safety an issue. Alternative fuels. Possibly labour intensive (low paid). Possibly high number of shareholders wanting dividends. Products may not be sold in the country of origin.
4. Conflict likely where Wage rises might be at the expense of lower profits and dividends
5. Managers want organisational growth at the expense of short-term profits
6. Expansion of production might cause extra noise and disruption in local community
7. Long term environmental damage not considered
8. Poor working conditions and low pay vs high profits