Is there a conflict between Agency Theory and the concept of organizational stakeholders? Explain in detail and provide an example.
In my opinion, there is a visible conflict between the Agency Theory and Stakeholders theory. In the Agency theory, the agent representing a party may be influenced by their personal understanding and opinion and the outcomes may not be according to what the party being represented anticipated. On the other hand, in the stakeholders theory, the outcomes are influenced by the requirements of the stakeholders and a common interest is anticipated.
An example of this is if an investor invests some money via an agent, the financial outcomes may be what the agent anticipated not the investor. In the stakeholder model, both the investor and the agent would achieve something anticipated and agreed by both.