Who is Stakeholder?
A stakeholder can be an individual, a group, or an organization with a vested interest in the activities or decision-making of an organization, a corporation, or a project. The term “stakeholder” represents two terms, ‘stake’ and ‘holder’. Here, ‘stake’ means having an interest, a legal claim, or a right in the activities of an entity. On the other hand, ‘holder’ means having ownership or being the proprietor of an entity. As stakeholders have a stake in an organization, they can either be members or have no official affiliation. Further, they can directly or indirectly influence corporations’ activities or projects. For successful business operations, stakeholder support is very crucial.
Key Takeaways
- A stakeholder is someone who has a vested interest in an organization and can either be impacted or impact (both positively and negatively) the operations and performance of an organization.
- Stakeholders are usually investors, customers, employees, suppliers, trade unions, governments, and communities.
- Stakeholders of any entity can be categorized into two groups, Internal and External.
- Among all the stakeholders, shareholders are the ones that the entity should be cognizant of.
Table of Content
- Why are Stakeholders Important?
- Types of Stakeholders
- Difference Between Internal Stakeholders and External Stakeholders
- Issues Concerning Stakeholders
- Difference Between Stakeholders and Shareholders
- How to Manage Stakeholders?
- Financial Stakeholders and Shareholder Value
- Conclusion
- Stakeholder – FAQs