Kategorier: Alle - costs - loyalty - investment - objectives

af mark jenkins 17 år siden

438

Discuss how stakeholder objectives might impact on shareholder value

Stakeholder objectives can influence shareholder value by affecting factors such as cash flow and investment costs. Stakeholder groups, like environmental advocates or employees, may push for actions that increase costs, such as higher wages or lower emissions, impacting short-term cash flow negatively.

Discuss how stakeholder objectives might impact on shareholder value

Discuss how stakeholder objectives might impact on shareholder value

Overall

will always be compromise
cannot meet all objectives

Depends on

The actual costs of meeting stakeholder objectives
Relative strength of stakeholder groups
Do they have media suppport
Are they organised

Positive impact

Reason: loyalty, avoidance of bad publicity etc
Better treatment of stakeholders leads to long term benefits
long term view
Stakeholder concept

Negative impact

E.g.
or increase in investment cost
negative impact on cash flow
increase in costs
lower emissions
Environmental group
negative impact on cashflow
objective: higher wages
Employee

Define

in practice does not affect overall answer too much
traditional would be
shareprice
dividends
now focused on discounted net cash flow less cost of investment
accounts for time value of money
profit discredited measure