Stakeholder Vs Shareholder
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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