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Comparison of Stakeholders and Shareholders
What is a Stakeholder?
A stakeholder is any individual or organisation that has a vested interest in the activities and decision-making of a business
Difference between Stakeholders and Shareholders:
Stakeholders:
Have an interest in the business- but do not own it
May work for (employees) or otherwise transact with the business
Shareholders:
Own a business
May also work in the business
Benefit directly from increases in the value of the business
Internal stakeholders:
They are closely connected to the organisation and their needs are likely to have a strong influence on an organisation
Examples of internal stakeholders:
Owners
Shareholders
Employees
Managers
Trade union representatives
Members of work councils
External stakeholders:
They have diverse needs and varying levels of influence on an organisation’s ability to. meet its objectives
Even though they are external to the organisation they still have a contractual relationship
They are sometimes known as ‘connected stakeholders’
Examples of external stakeholders:
Customers
Competitors
Suppliers
Central and local government agencies and regulators
Pressure groups
Investors
Bankers
Creditors
Professional and Trade associations
The local community
The media
Primary stakeholders:
Those who are directly involved and affected, either positively or negatively, by an organisation’s actions
These people will have the power to influence and shape decisions
Secondary stakeholders:
They are the ‘intermediaries’ so the persons or organisations who are indirectly affected by an organisation’s actions
These people will have the power to influence and shape decisions
Key stakeholders:
They can either be primary or secondary stakeholders but will have significant influence upon, or within, an organisation
Comparison of Stakeholders and Shareholders
What is a Stakeholder?
A stakeholder is any individual or organisation that has a vested interest in the activities and decision-making of a business
Difference between Stakeholders and Shareholders:
Stakeholders:
Have an interest in the business- but do not own it
May work for (employees) or otherwise transact with the business
Shareholders:
Own a business
May also work in the business
Benefit directly from increases in the value of the business
Internal stakeholders:
They are closely connected to the organisation and their needs are likely to have a strong influence on an organisation
Examples of internal stakeholders:
Owners
Shareholders
Employees
Managers
Trade union representatives
Members of work councils
External stakeholders:
They have diverse needs and varying levels of influence on an organisation’s ability to. meet its objectives
Even though they are external to the organisation they still have a contractual relationship
They are sometimes known as ‘connected stakeholders’
Examples of external stakeholders:
Customers
Competitors
Suppliers
Central and local government agencies and regulators
Pressure groups
Investors
Bankers
Creditors
Professional and Trade associations
The local community
The media
Primary stakeholders:
Those who are directly involved and affected, either positively or negatively, by an organisation’s actions
These people will have the power to influence and shape decisions
Secondary stakeholders:
They are the ‘intermediaries’ so the persons or organisations who are indirectly affected by an organisation’s actions
These people will have the power to influence and shape decisions
Key stakeholders:
They can either be primary or secondary stakeholders but will have significant influence upon, or within, an organisation