The chief executive may realize that the interests of customers could conflict with the efforts to serve the shareholders of Sound Health Ltd because:
i) The shareholders may require higher returns on their investments in the company which may only be possible through higher charges on the customer. The customers may find higher product charges exploitative
ii) The customers may require the company to make socially responsible investments, but the shareholders may not be in agreement thereto as this reduces profitability
iii) To supply product to the greatest number of customers, expansion plans may have to be considered and this requires further capital, which the shareholders may not be willing to part with
iv) Duality relationships where customers are also shareholders of the company, make the conflicts even more intense
v) The term “best possible product” would mean a product of high quality. To produce high quality products requires the use of high quality raw materials
