Difference between Shareholder and Stakeholder | Business and Society

Difference between Shareholder and Stakeholder
Business and Society
Management Notes

S.No. Shareholder Stakeholder
1. A shareholder is a person, who has invested money in the business by purchasing shares of the concerned enterprise. A stakeholder is someone who has a vested interest in an organization and its activities and are affected by the activities of the organization.
2. All shareholders can be considered as stakeholders. All stakeholders may or may not be considered as shareholders.
3. Shareholders are the owners so they have a legal involvement concerning the rights to directly affect a company’s policies and actions. Stakeholders  are the interparties so they have no such involvement with the company in any financial or legal way.
4. Only a company, which is limited by shares have shareholders. Every company or organization or enterprise  have stakeholders.
5. Shareholders focuses on Return on Investment  made in the company. Stakeholders Focuses on performance,profitability, and liquidity of the company.of the company.
6. Shareholders include Equity shareholders, Preference shareholders,etc. Stakeholders include Shareholders, Creditors, Debenture holders, Employees, Customers, Suppliers, Government etc.
7. The scope of shareholders is comparatively limited than the stakeholders . The scope of stakeholders is comparatively wider than the shareholders .

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