Difference between stakholders & shareholders

Question

Difference between stakholders & shareholders

Answer 1

in simple words a stakeholder is a person who has a stake(interest) in the company and any decision or action of the company can effect that..eg creditors of the company,suppliers,customers etc. they may or may not own shares in the company.

whereas a shareholder is a person who by way of shares has an ownership right in the company..they r more concerned with the bigger picture like the profits n losses n dividends etc.

Answer 2

Share holder as the name says...has special interest becoz he owns shares in the company.

Stakeholders include all those people who have interest in a company.

Say employees, shareholders, customers, suppliers etc.

Anybody who has some link with the company in some way and the well being of the company in a way helps them.

Answer 3

The difference between a stakeholder & a shareholder is that a shareholder is an owner of an entity... they hold shares of ownership.  Shareholders are actually one class of Stakeholders.

A stakeholder is anyone who has a stake, or an interest, in the actions of an enterprise.  Not necessarily financial, a stakeholder can include directors, management, vendors, customers, employees, the community, as well as shareholders.  

Answer 4

Stakeholder :

A corporate stakeholder is a party who affects, or can be affected by, the company's actions. The stakeholder concept was developed and championed by R. Edward Freeman in the 1980s. Since then it has gained wide acceptance in business practice and in theorizing relating to strategic management, corporate governance, business purpose and corporate social responsibility (CSR).

Types of stakeholders :

    * People who will be affected by an endeavor and can influence it but who are not directly involved with doing the work. In the private sector, examples include managers who are affected by a project, process owners, people who work with the process under study, internal departments that support the process, the financial department, suppliers, and even customers.

    * People who are (or might be) affected by any action taken by an organization or group. Examples are parents, children, customers, owners, employees, associates, partners, contractors, suppliers, people that are related or located near by. Any group or individual who can affect or who is affected by achievement of a group's objectives.

    * An individual or group with an interest in a group's or an organization's success in delivering intended results and in maintaining the viability of the group or the organization's product and/or service. Stakeholders influence programs, products, and services.

    * Any organization, governmental entity, or individual that has a stake in or may be impacted by a given approach to environmental regulation, pollution prevention, energy conservation, etc.

    * A participant in a community mobilization effort, representing a particular segment of society. School board members, environmental organizations, elected officials, chamber of commerce representatives, neighborhood advisory council members, and religious leaders are all examples of local stakeholders.

Shareholder :

A shareholder or stockholder is an individual or company (including a corporation) that legally owns one or more shares of stock in a joint stock company. A company's shareholders collectively own that company. Thus, such companies strive to enhance shareholder value. Stockholders are granted special privileges depending on the class of stock, including the right to vote (usually one vote per share owned, but sometimes this is not the case) on matters such as elections to the board of directors, the right to propose shareholder resolutions, the right to share in distributions of the company's income, the right to purchase new shares issued by the company, and the right to a company's assets during a liquidation of the company. However, stockholder's rights to a company's assets are subordinate to the rights of the company's creditors. This means that stockholders typically receive nothing if a company is liquidated after bankruptcy (if the company had had enough to pay its creditors, it would not have entered bankruptcy), although a stock may have value after a bankruptcy if there is the possibility that the debts of the company will be restructured.

Stockholders or shareholders are considered by some to be a partial subset of stakeholders, which may include anyone who has a direct or indirect equity interest in the business entity or someone with even a non-pecuniary interest in a non-profit organization. Thus it might be common to call volunteer contributors to an association stakeholders, even though they are not shareholders.