Abstract

Often conflicts arises between stakeholders of a firm. Instances where one stakeholder’s needs conflict with the rights of other stakeholders can put managers in a precarious situation. Strict adherence to contract rules, for example, may be the absolute right of the firm but at the same time enforcement of that contractual right or rule may be unduly damaging to another stakeholder. Managers in these situations may seek to find a balancing act between the two conflicting sides in order to maintain the balance that prioritizes the competing and conflicting responsibilities. The following case study, based on an actual managerial decision in an industrial setting, seeks to bring the lessons of balancing competing interests into harmony, as best as possible, in order to pursue the survival and success of the enterprise while realizing that all stakeholders are vital to the said success and survival.