Discuss how stakeholder objectives might impact on shareholder value

now focused on discounted net cash flow less cost of investment

profit discredited measure

accounts for time value of money

traditional would be

dividends

shareprice

in practice does not affect overall answer too much

E.g.

objective: higher wages

negative impact on cashflow

lower emissions

increase in costs

negative impact on cash flow

or increase in investment cost

Stakeholder concept

long term view

Better treatment of stakeholders leads to long term benefits

Reason: loyalty, avoidance of bad publicity etc

Relative strength of stakeholder groups

Are they organised

Do they have media suppport

The actual costs of meeting stakeholder objectives

cannot meet all objectives

will always be compromise