Stakeholder / Stakeholders

What is a Stakeholder?

A stakeholder is anyone who has a “stake” in how a business performs – basically, anyone who’s affected by or can affect a company’s actions.

👥 Think of it like this: if a company were a movie, stakeholders would be everyone from the actors and directors (employees and managers) to the audience (customers) and movie theater owners (suppliers and partners).

Stakeholder Examples

Let’s break this down with some real-world examples:

• 🏢 Employees (their jobs and livelihoods depend on the company)
• 💼 Shareholders (they’ve invested their money)
• 🛒 Customers (they rely on the company’s products or services)
• 🤝 Suppliers (their business depends on the company’s orders)
• 🏘️ Local communities (affected by the company’s operations)
• 🏛️ Government agencies (interested in taxes and regulation compliance)

👆By the way, here’s an interesting fact: The concept of stakeholders became popular in the 1980s when businesses started realizing that focusing solely on shareholders wasn’t enough for long-term success.

Types of Stakeholders

Internal Stakeholders

These are the folks “inside the building” who directly participate in the company’s operations:

• Employees (from entry-level to C-suite)
• Board members
• Managers
• Company owners

Their decisions and actions directly influence the company’s day-to-day operations and future direction.

External Stakeholders

These are the people and groups “outside the building” who are affected by or can affect the company:

• Customers
• Suppliers and vendors
• Investors and shareholders
• Local communities
• Government bodies
• Media
• Environmental groups
• Competitors (yes, they count too!)

Stakeholder vs. Shareholder

Here’s a common confusion we should clear up! 🤔

Shareholders own shares in the company. They’re focused primarily on:

• Financial returns
• Stock price
• Company growth
• Dividend payments

Stakeholders include shareholders PLUS everyone else affected by the company. They care about:

• Company sustainability
• Environmental impact
• Social responsibility
• Employee wellbeing
• Community relations

Think of it this way: All shareholders are stakeholders, but not all stakeholders are shareholders!