Skip to content

ACCA Strategic Professional · Strategic Business Leader · Stakeholder analysis and organisational social responsibility

Zenith Foods' shareholders demand higher dividends, while its farmer-suppliers, who are critical to supply, demand higher purchase prices. The board chooses to hold a joint forum where both sides explain their constraints and agree a phased price and dividend plan. Which approach to stakeholder conflict does this best illustrate?

This is collaboration: the board brings the conflicting stakeholders together for two-way dialogue and negotiates a compromise plan that partly meets both sets of needs. It differs from imposing a decision, avoiding the issue or simply yielding to the most powerful party.

  1. ACollaboration through negotiated, mutual-gain engagementCorrect
  2. BCompliance with the demands of the most powerful stakeholder only
  3. CAvoidance by deferring all decisions until pressure fades
  4. DCoercion by imposing a board-decided solution

Explanation

A joint forum with both sides explaining constraints and agreeing a phased plan is collaborative, two-way engagement aimed at mutual gain. It is not imposition, avoidance or yielding to one party, since both groups take part in shaping the outcome.

Did you get it right without looking?

One question tells you little. A timed set on Stakeholder analysis and organisational social responsibility shows your real accuracy, how long you take and where you lose marks.

Practise Stakeholder analysis and organisational social responsibilityFree diagnostic mock

More Stakeholder analysis and organisational social responsibility questions