What is the difference between stakeholders and shareholders?
Shareholders are the owners of the company who invested money in the form of share
capital. Stakeholders include the shareholders along with customers, employees, creditors, suppliers, community neighbors, and various governmental agencies.
Shareholders are those who have voting rights and rights of electing the members of the
board of directors. But stakeholders don't have such rights.
Shareholders share both the profits and loss of the company. But the stakeholders if they
share, then it is only the profits and not the losses of the company.
Shareholders value is easier to define than stake holder’s value, so it is easier to account
for shareholders than for stakeholders.
According to the performance metrics shareholders value is sufficient to maintain investors commitment. But for stakeholders there has to be fair distribution of value created to maintain commitment of multiple stakeholders.
Shareholders are the owners of the company who invested money in the form of share
capital. Stakeholders include the shareholders along with customers, employees, creditors, suppliers, community neighbors, and various governmental agencies.
Shareholders are those who have voting rights and rights of electing the members of the
board of directors. But stakeholders don't have such rights.
Shareholders share both the profits and loss of the company. But the stakeholders if they
share, then it is only the profits and not the losses of the company.
Shareholders value is easier to define than stake holder’s value, so it is easier to account
for shareholders than for stakeholders.
According to the performance metrics shareholders value is sufficient to maintain investors commitment. But for stakeholders there has to be fair distribution of value created to maintain commitment of multiple stakeholders.
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