The primary goal of a corporate enterprise from the viewpoint of its steakholder/shareholders is to maximize profits and enhance shareholder investments. Since labor costs are a critical input cost for most companies, an enterprise may seek to keep these costs under tight control. This may have the effect of making another important group of stakeholders, its employees, unhappy. The most efficient company’s successfully manage the self-interests and expectations of its stakeholders.
Source: www.investopedia.com