explain why potential problems could arise if Dithaba were to implement the views of Mr Bryan Butan, and thereby run the company according to his stance of treating all stakeholders exactly equally. include reference to the needs and expectations of the following stakeholders in your answer: shareholders, employees, customers, tax, authorities.
If Dithaba were to implement the views of Mr. Bryan Butan and treat all stakeholders exactly equally, potential problems could arise due to the diverse needs, expectations, and interests of each stakeholder group.
1. Shareholders:
Treating all stakeholders equally may not align with the primary goal of maximizing shareholder wealth. Shareholders invest in the company in order to generate profits, and they may expect priority treatment in terms of decision-making that benefits the financial performance of the company. If all stakeholders were treated equally, shareholders may not receive the returns they expect, leading to dissatisfaction and potential divestment.
2. Employees:
Employees may have different needs and expectations compared to other stakeholders. Treating all stakeholders equally may result in employees feeling undervalued or overlooked, leading to low morale and decreased productivity. Employees may expect fair pay, job security, career development opportunities, and a positive working environment, and these needs may not be met if all stakeholders are treated equally at the expense of employee well-being.
3. Customers:
Customers expect high-quality products or services, excellent customer service, and value for money. Treating all stakeholders equally may not prioritize customer satisfaction, leading to a decline in sales and a loss of customer loyalty. Neglecting the needs and expectations of customers could result in a damaged reputation and decreased market share.
4. Tax Authorities:
Tax authorities expect companies to comply with tax regulations and pay their fair share of taxes. Treating all stakeholders equally may not prioritize tax compliance and could result in legal issues and financial penalties. Neglecting the needs and expectations of tax authorities could harm the company's reputation and financial stability.
Overall, implementing the view of treating all stakeholders exactly equally could lead to conflicts among stakeholders and create challenges in effectively managing the company. It is important for Dithaba to consider the varying needs and expectations of each stakeholder group in order to achieve a balance that serves the interests of all parties involved.