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Stakeholder (corporate)

A corporate stakeholder is a party that can affect or be affected by the actions of the
business as a whole. The stakeholder concept was first used in a 1963 internal
memorandum at the Stanford Research institute. It defined stakeholders as "those
groups without whose support the organization would cease to exist." The theory was
later 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).
The term has been broadened to include anyone who has an interest in a matter.
Applications of the term
Examples of a company's stakeholders
Stakeholders Examples of interests
Government taxation, VAT, legislation, low unemployment, truthful reporting

Employees rates of pay, job security, compensation, respect, truthful communication

Customers value, quality, customer care, ethical products

providers of products and services used in the end product for the
Suppliers customer, equitable business opportunities

Creditors credit score, new contracts, liquidity

jobs, involvement, environmental protection, shares, truthful

Community communication

Trade Unions quality, Staff protection, jobs

,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, 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.
Market (or Primary) Stakeholders - usually internal stakeholders, are those that
engage in economic transactions with the business. (For example stockholders,
customers, suppliers, creditors, and employees)
Non-Market (or Secondary) Stakeholders - usually external stakeholders, are those
who - although they do not engage in direct economic exchange with the business - are
affected by or can affect its actions. (For example the general public,
communities,activist groups, business support groups, and the media)
Company stakeholder mapping
A narrow mapping of a company's stakeholders might identify the following
• Employees
• Communities
• Shareholders
• Creditors
• Investors
• Government
• Customers
A broader mapping of a company's stakeholders may also include:
• Suppliers
• Labor unions
• Government regulatory agencies
• Government legislative bodies
• Government tax-collecting agencies
• Industry trade groups
• Professional associations
• NGOs and other advocacy groups
• Prospective employees
• Prospective customers
• Local communities
• National communities
• Public at Large (Global Community)
• Competitors
• Schools
• Future generations
• Analysts and Media
• Alumni (Ex-employees)
• Research centers
• Each Person
From Wikipedia, the free encyclopedia
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A shareholder or stockholder is an individual or institution (including a corporation)
that legally owns one or more shares of stock in a public or private corporation.
Shareholders own the stock, but not the corporation itself (Fama 1980).
Stockholders are granted special privileges depending on the class of stock. These
rights may include:
• The right to sell their shares, provided there is a buyer.
• The right to vote on the directors nominated by the board.
• The right to nominate directors (although this is very difficult in practice because
of minority protections) and propose shareholder resolutions.
• The right to dividends if they are declared.
• The right to purchase new shares issued by the company.
• The right to what assets remain after a liquidation.
Stockholders or shareholders are considered by some to be a subset of stakeholders,
which may include anyone who has a direct or indirect interest in the business entity.
For example, labor, suppliers, customers, the community, etc. are typically considered
stakeholders because they contribute value and/or are impacted by the corporation.
Shareholders in the primary market who buy IPOs provide capital to corporations;
however, the vast majority of shareholders are in the secondary market and provide no
capital directly to the corporation. Contrary to popular opinion, shareholders of American
public corporations are the (1) owners of the corporation, (2) the claimants of the profit,
or (3) investors, as in the contributors of capital.[1] [2]

What Does Shareholder Mean?

Any person, company, or other institution that owns at least one share in a company.

A shareholder may also be referred to as a "stockholder".

Investopedia explains Shareholder

Shareholders are the owners of a company. They have the potential to profit if the
company does well, but that comes with the potential to lose if the company does

Who are Shareholders?

Shareholders are people who have bought shares in a limited liability company. They
own a part of the company in exact proportion to the proportion of the shares they own.
This entitles them to a share of the profits in the form of dividends. In private businesses
the shareholders are very often directors as well, and they are very close to the
management of the company and receive a great deal of information about the value of
their investment. In public limited companies, however, the shareholder may only meet
the management at the Annual General Meeting, if at all. In this case the shareholder
needs to be able to analyse the Company Accounts in order to determine the value of
his/her investment. Shareholders buy shares in the hope of a return on their purchase.
This return can be expressed in terms of a percentage rate of interest. Therefore, before
we can explain what the shareholder ratios mean, we have to revise the whole concept
of a return on an investement.