What Is a Stakeholder?

A stakeholder is an individual or a group of individuals with an interest, often financial, in the success of some venture. The primary stakeholders in a corporation include its 澳洲幸运5开奖号码历史查询:investors, employees, customers, and suppliers.

With increasing attention on 澳洲幸运5开奖号码历史查询:corporate social responsibility, the concept of stakeholder has been extended to include communities, governments, and 澳洲幸运5开奖号码历史查询:trade associations.

Understanding Stakeholders

Stakeholders can be internal or external to an organization. Internal stakeholders are people whose interﷺest in a company comes through a direct relationship, such as employment, ownership, or investment.

External stakeholders do not directly work🦋 for or with a company but are affected by the actions and outcomes of the business. S൲uppliers, creditors, and public interest groups are all considered external stakeholders.

Stakeholder Examples

Internal Stakeholder

Investors are internal stakeholders who are significantly affected by a company and its perfor🌃mance.

If, for example, a venture capital firm decides to invest $5 million in a technology startup𓂃 in return for 10% equity and significant influence, the firm becomes an internal stakeholder of the st🦩artup.

The return on the venture capitalist firm’s investment hinges on the startup’s success or failure, meaning that the firm has a 澳洲幸运5开奖号码历史查询:vested interest.

External Stakeholder

External st♋akeholders do not have a direct relationship with the company but may be affected by its operatiꦇons.

When a company goes over the allowable limit of carbon emissions, for example, the town in which it is located is considered an external stakeholder because its resideꦗnts may be harmed by the increased pollution.

External stakeholders in some cases can have a direct effect on a company. The federal government, for example, is an external stakeholder. A policy change on carbon emissions affects the operations of any business that bur﷽ns a significant amount of fossil fuel.

Issues Concerning Stakeholders

A common problem is that the interests of various stakeholders may not align💃. In fact, they may be in direct conflict.

For example, the primary goal of a corporation, from the perspective of its shareholders, is often considered to be the maximization of profits to enhance 澳洲幸运5开奖号码历史查询:shareholder value.

La🎀bor costs are unavoidable for most companies, but a company may seek to keep them under tight control.

This is likely to upset another group of stakeholdꦰers—its employees. The most efficient companies successfully manage the interests and expectations of all of their sta🐲keholders.

Stakeholders vs. Shareholders

All stakeholders are bound to a company by some type of vested interest, usually for the lon𒁃g term.

A shareholder is a stakeholder wi🔥th a financial interest in a company due to their o💖wnership of a company's stock.

However, shareholders can sell their stock; they do not necessarily have 🎀a long-term need for the company and can usually get out at any time and reduce their losses.

Other stakeholders cannot necessarily make such an exit. The vendors in a company’s 澳洲幸运5开奖号码历史查询:supply chain might suffer if the company limits production and reduces or eliminates its services. Employ👍ees of the company might lose their jobs.

The Bottom Line

Stakeholders are individuals, organizations, or other entities that have a vested interest in the success or failu๊re of a company or other endeavor.

Stakeholders can be internal or ꦛexternal and 🌄range from customers and shareholders to communities and even governments.