stakeholders – those with an interest or concern in the way that a business operates
To remember what stakeholders means use the following mnemonic:
The stake holders (stakeholders) all had an interest in the way the vampire hunting business operated.
The difference between a stakeholder and a shareholder is that a shareholder is someone who owns the company, while a stakeholder is everyone who is impacted by (or has a “stake” in) the company. There are two main types of stakeholders; internal stakeholders and external stakeholders. Internal stakeholders are people who are employed by the company. External stakeholders include customers, end users, and suppliers. Even though external stakeholders are outside the organisation, the company still impacts them in some way. For example, ramping up prices can have an adverse effect on a customer and affect their circumstances.
Shareholders and stakeholders can have different priorities. Shareholders have a financial interest and want to get the best return on their investment. Stakeholders are focused on more than just finances. Internal stakeholders want their projects to succeed, want to be treated well and advance in their roles. External stakeholders want a long term partnership to secure their futures and want to work with successful companies.