avoiding economic conflict

Question 1

How can promoting stakeholder collaboration avoid conflict?

Answer 1

• Engaging stakeholders: firms and policymakers can engage with workers + other stakeholders through consultations, e.g. including employees in decision-making can reduce workplace disputes over wages or working conditions
• Corporate Social Responsibility (CSR): firms adopting CSR initiatives can align their business practices with societal values, reducing conflicts with consumers and environmental activists.

Question 2

How can balancing trade-offs avoid conflict?

Answer 2

• Equitable policies: governments and firms should strive for policies that balance efficiency with equity, such as progressive taxation systems or fair wages. E.g. implementing minimum wage policies that ensure a living wage while maintaining business competitiveness
• Long-term vs Short-term Goals: firms should communicate long term benefits of policies that may involve short term sacrifices

Question 3

How can addressing income inequality avoid conflict?

Answer 3

• Redistributive policies: progressive taxation + social welfare programmes can reduce income disparities e.g. universal basic income proposals aim to provide financial security for everyone, reducing conflict over wealth distribution
• Corporate initiatives: firms can voluntarily address pay gaps and improve working conditions to reduce worker grievances.

Question 4

How can international cooperation avoid conflict?

Answer 4

• Trade agreements: multilateral trade agreements reduce conflicts by ensuring mutually beneficial terms for participating countries. E.g the EU promotes economic integration and reduced trade barriers
• Climate collaboration: global initiatives such as the Paris Agreement encourage countries to work together on climate goals, reducing conflicts on environmental issues