What Are Stakeholders: Definition, Types, and Examples.

What are Stakeholders?

A stakeholder is an individual or group that has an interest in an organization or project. A stakeholder can be an employee, supplier, customer, shareholder, or member of the community.

Who are stakeholders in simple terms? In business and investing, the term stakeholder refers to anyone who has an interest in the success or failure of a company or other enterprise. This can include shareholders, employees, customers, suppliers, lenders, and the community in which the business operates.

The interests of different stakeholders can sometimes conflict, and it is the job of company management to try to balance these competing demands. For example, shareholders may want a company to maximize profits, while employees may be more concerned with job security and fair wages.

In the end, it is up to the shareholders to decide what they want a company to do, as they are the ultimate owners. However, all stakeholders should be considered when making business decisions, as they can all impact the company's bottom line.

What are the 4 types of stakeholders?

1. Shareholders: These are the people who own shares in a company. They may or may not be actively involved in the day-to-day operations of the business, but they will be interested in the overall performance of the company and its share price.

2. Employees: These are the people who work for the company. They will be interested in things like job security, wages, and working conditions.

3. Customers: These are the people who buy the company's products or services. They will be interested in things like quality, price, and customer service.

4. Suppliers: These are the people who provide the company with raw materials or other supplies. They will be interested in things like payment terms and delivery schedules.

What type of stakeholder is an investor?

Investors are a type of stakeholder that provides capital to a company in exchange for an ownership stake in the business. Investors typically seek to make a profit by selling their shares for more than they paid for them, or by receiving dividends from the company.