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官方开奖结果体彩网:investors, employees, customers, and suppliers.

With increasing attention on 澳洲幸运5官方开奖结果体彩网:corporate social responsibility, the concept of stakeholder has been extended to include communities, governments, and 澳洲幸运5官方开奖结果体彩网:trade associations.

Understanding Stakeholders

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

External stakeholders do not directl🔯y work for or with a company but are affected by the actions and outcomes of the business. Suppliers, creditors, and publ🌊ic interest groups are all considered external stakeholders.

Stakeholder Examples

Internal Stakeholder

Inves🍰tors are in🐎ternal stakeholders who are significantly affected by a company and its performance.

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

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官方开奖结果体彩网:vested interest.

External Stakeholder

External stakeho✅lders do not have a direct relationship with the company but may be affected by its operations.

When a company goes over the allowable limit of carbon emissions, for example, the town in which it is ꧑located is considered an external stakeholder because its residents may be harmed by the increased pollution.

External stakeholders in some cases can have a direct effect on a company. The federal govꦫernment, for example, is an external stakeholder. A policy change on carb🐓on emissions affects the operations of any business that burns 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 b🍒e 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官方开奖结果体彩网:shareholder value.

Labor costs are 🍸unavoidable for most companies, but a company may seek to kee🌳p them under tight control.

This is likely to upset another group of stakeholders—its employees. The most efficient companies successfully manage the interests and expectations of all of theiꦫr stakeholders.

Stakeholders vs. Shareholders

All stakeholders are bound to a company by some type of vested int♌erest, usually for the🌺 long term.

A shareholder is a stakeholder with a f♚inancial interest in a company due to their ownership 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 ti♐me and reduce their losses.

Other stakeholders cannot necessarily make such an exit. The vendors in a company’s 澳洲幸运5官方开奖结果体彩网:supply chain might suffer if the com🌃pany limits production and reduces or eliminates its services. Employees 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 failure of a company o🍰r other endeavor.

Stakeholders can be internal or external and range from customers and shareholders to communities and even governmen⭕ts.