B3 MISHU ContentBlog ShareholderVSStakeholder

How Are Shareholders And Stakeholders Different?

Steak holder? No, it’s Stakeholder!  

If you haven’t read the explanation of shareholder, here’s the quick link to bring you there.  

As we have mentioned, a shareholder is someone that holds a share in your company or quite literary a ‘portion’ of your company.  

What are stakeholders?  

Let’s first understand what a ‘stake’ is. A stake can be explained as metal or wooden post that is used to support a plant by penetrating the ground. In business terms, a stake can be defined as the responsibility or the ownership of a company or organization.  

So, if we were to piece it together, a stakeholder can be known as the backbone or heart of a business as they play a vital role in an organization. They are the ones who affect the business, and they will be affected by the business if anything were to happen.  

Who are the stakeholders in your company?  

Internal Stakeholders

People who have a direct relationship with your company.  

  • Customers 
  • Employees  
  • Director  
  • Managers 
  • Shareholders 

External Stakeholders

Does not have a direct relationship with your company.  

  • Suppliers 
  • Communities 
  • Governments  
  • Customers

Yes, you’ve seen correctly, even shareholders are also considered the stakeholders of a company. Why? Well, that’s because they are also directly affected and will be affected by the company itself! 

Fun Fact: Did you know that the environment is also a company’s stakeholder? That’s because an environment might be affected by a business! 

– Climate change in the environment might affect the raw products that a business needs to operate to have a higher price. It might even affect transportation or labour costs.  

– Factory based businesses where the chemical wastes are poured into the river or smoke emissions will destroy the environment.  

So, with a better understanding of stakeholders, are you ready to start your business strong? Email us at [email protected] for more information on how to start your own business! 

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