What Is a Stakeholder?
A stakeholder is anyone who has a “stake” in how a business performs – essentially, anyone affected by or capable of influencing a company’s actions.
Fun Fact: The concept of stakeholders gained popularity in the 1980s when businesses realized focusing solely on shareholders wasn’t enough for long-term success.
Stakeholder Examples
Stakeholders can be found across various roles and groups. Here are some examples:
- Employees: Their jobs and livelihoods depend on the company.
- Shareholders: They’ve invested their money in the business.
- 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 tax payments and regulation compliance.
Types of Stakeholders
Internal Stakeholders
These stakeholders are directly involved in the company’s operations:
- Employees
- Managers
- Board Members
- Company Owners
Internal stakeholders influence the company’s daily operations and strategic direction.
External Stakeholders
These stakeholders are outside the company but are still affected by or can affect its actions:
- Customers
- Suppliers and Vendors
- Investors
- Local Communities
- Government Bodies
- Media
- Environmental Groups
- Competitors (yes, they count too!)
Stakeholder vs. Shareholder
A common source of confusion is the difference between stakeholders and shareholders. Here’s a simple comparison:
| Aspect | Shareholder | Stakeholder |
|---|---|---|
| Definition | Owns shares in the company | Affected by or can affect the company |
| Focus | Financial returns, stock price | Sustainability, social responsibility |
| Scope | Part of stakeholders | Includes shareholders and others |
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