Shareholder vs. Stakeholder: What’s the Difference?

 

Shareholders and stakeholders are two groups of people who have an interest in a company, but they have different types of relationships with the company and different levels of influence.

Shareholders are the owners of a company and are typically entitled to a share of the company’s profits and voting rights in company decisions. They are typically motivated by the desire to maximise their financial returns on their investment in the company. Shareholders can be individuals, institutions, or other companies.

Stakeholders, on the other hand, are any individuals or groups that have an interest in or are affected by the actions of a company. Stakeholders may include employees, customers, suppliers, local communities, and even the environment. Stakeholders may not have the same level of ownership or control as shareholders, but they can still be impacted by the decisions and actions of the company.

In summary, shareholders are the owners of a company and are primarily concerned with maximizing their financial returns, while stakeholders are any individuals or groups that have an interest in or are affected by the actions of a company. Stakeholders may include employees, customers, suppliers, local communities, and the environment.
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