What Challenges Do Businesses Face with External Stakeholders?
While engaging with external stakeholders is beneficial, it comes with challenges:
Conflicting Interests: Different stakeholders may have conflicting interests that are difficult to balance. For example, investor demands for higher returns might conflict with community expectations for sustainable practices. Communication Barriers: Keeping all stakeholders informed and engaged can be challenging, particularly for large organizations with a diverse stakeholder base. Regulatory Changes: Staying compliant with evolving regulations requires continuous monitoring and adaptation. Reputation Management: Negative media coverage or community backlash can harm a company’s reputation and require significant effort to manage.