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As you probably know, stakeholders are the owners of the company. The employees work for the company and are compensated as such.

Ideally, everyone gets along--employees feel appreciated through their pay and work, and stakeholders reap profits.

Conflicts occur when the trust breaks down. Specifically, a shareholder may want to take money out of the company (in a dividend, for example), and the employees may feel a bonus for employees would be a better use of the money.

The most common example I can think of is company expenses: stakeholders want a lean-and-mean company, and employees would enjoy more money be spent for their sake--higher benefits, award programs, etc.

If these problems continue, both sides lose. A company without decent employees will not make money for the stakeholders, and eventually they will have to lay off employees because there is not enough money to pay them. That equals no money for stakeholders and no jobs/money for employees.

A smart company will find a way to align the stakeholders and employees desires. Give employees some ownership in the company, or at least give them bonuses for running a tight ship.

One thing to remember is that Shareholders and Stakeholders are not the same thing.

They both have different meanings and different purposes

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