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Expectations of the business community are increasing into areas beyond the core product or service into consideration of the environment, standards and human rights (Wetherly and Otter 2011). The weight of expectation may lead to potential conflict amongst stakeholder groups, particularly in times of economic austerity currently being experienced in many European Countries.
The construction industry is widely-recognised as an accurate barometer of the business environment and reports in late summer 2012 were of profit falls by over 20% and a continuation of the decline in house sales. To address this a number of changes to UK planning procedures have been announced by the government in September 2012.
Part 1 - Select a construction-based business of your choice and explain stakeholder theory to illustrate the primary interests of the stakeholder groups and identify any areas of potential conflict between the stakeholder groups.
Part 2 - Business, when viewed as a stakeholder in society, has responsibilities that extend beyond the economic and legal framework to incorporate ethical/environmental and philanthropic aspects. Use Carrolls model to explain and provide an illustration of how your selected business is responding to the four tiers that make up Carroll's model.
Part 3 - During the first half of 2012 economic growth has been largely static or recessionary in the UK and other European countries. The construction industry has reacted to a dramatic change in demand for housing. Explain and illustrate the theory of supply and demand as it applies to housing and include an analysis of the price elasticity within the housing sector.
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