A stakeholder is anyone who has a "stake" in how a business performs — anyone affected by, or able to influence, the company's actions. That includes employees, customers, suppliers, investors, and local communities. Shareholders (who own stock) are just one type of stakeholder.
What Is a Stakeholder?
A stakeholder is any person or group with an interest in a company's success or failure. The concept gained traction in the 1980s, when businesses realized that focusing solely on shareholders wasn't enough for long-term success — the people who work for, buy from, supply, and live near a company all shape (and are shaped by) its decisions.
Stakeholder Examples
| Stakeholder | Their stake |
|---|---|
| Employees | Their jobs and livelihoods depend on the company |
| Shareholders / investors | They've invested money and want returns |
| Customers | They rely on the company's products or services |
| Suppliers | Their business depends on the company's orders |
| Local communities | Affected by jobs, operations, and impact |
| Government agencies | Interested in taxes and regulatory compliance |
Types of Stakeholders: Internal vs External
| Internal (inside the company) | External (outside, still affected) |
|---|---|
| Employees | Customers |
| Managers | Suppliers & vendors |
| Board members | Investors |
| Company owners | Local communities & government |
| Media, environmental groups, competitors |
Internal stakeholders are directly involved in operations and shape daily decisions and strategy. External stakeholders sit outside the company but are still affected by — or can affect — what it does.
Stakeholder vs Shareholder
The two are easy to confuse. The key idea: every shareholder is a stakeholder, but not every stakeholder is a shareholder.
| Aspect | Shareholder | Stakeholder |
|---|---|---|
| Definition | Owns shares in the company | Affected by or can affect the company |
| Focus | Financial returns, stock price | Broader: jobs, sustainability, responsibility |
| Scope | A subset of stakeholders | Includes shareholders and everyone else |
| Time horizon | Often shorter-term returns | Often longer-term wellbeing |
What Is a Stakeholder? FAQ
Are employees stakeholders?
Yes — employees are internal stakeholders. Their livelihoods depend on the company, and they directly influence its operations and performance, so they hold one of the strongest stakes of all.
Are customers stakeholders?
Yes. Customers are external stakeholders: they rely on the company's products or services, and their buying decisions directly affect its revenue and survival.
Are competitors stakeholders?
Yes, competitors count as external stakeholders. They don't have a financial stake in the company, but they're affected by — and can influence — its actions through pricing, market moves, and industry standards.
Is a shareholder a stakeholder?
Yes. A shareholder is one type of stakeholder — specifically one who owns equity. All shareholders are stakeholders, but stakeholders also include employees, customers, suppliers, and communities who don't own shares.
What are the main types of stakeholders?
The two broad categories are internal (employees, managers, board members, owners) and external (customers, suppliers, investors, communities, government, media, and competitors).
