Definition of Stakeholder

What is a stakeholder? In business, a stakeholder is any individual, group or organisation that is influenced by (or influences) an organisation’s actions. They have an interest in the organisation and its performance. They can be within or outside the organisation.

What is a stake?

A stake can be defined as an interest, right or legal claim to a business or its activities.

What is the meaning of stakes in stakeholders. Examples of stakes in flow chart.

Internal and External Stakeholders

There are two types of stakeholders: internal and external.

Internal Stakeholders

Internal stakeholders are individuals and groups who are directly or financially involved in the operations of a business. They have the greatest interest because its success or failure has a direct influence on their financial or professional well-being.

Examples of internal stakeholders in business are board members, shareholders, employees, and managers.

External Stakeholders

External stakeholders are individuals and groups who are affected by the work of an organization, but do not have a direct relationship with it.

Examples of external stakeholders are customers, communities that businesses operate in, suppliers, and society in general. The government is also an external stakeholder.

As good corporate citizens, companies need to be sensitive to the needs of their external stakeholders. They should keep them informed of important decisions and give them chances to voice their opinions on matters that are important to them.

You can read more on the different types of stakeholders on this link: 6 Examples of Stakeholders and Their Importance in Business

Different examples of stakeholders in a table. What is a stakeholder. types of stakeholders in a business. stakeholder definition. Business Studies basics. Grade 12 NCS Lessons. South African

Not All Stakeholders are Shareholders

You might have guessed by now that ‘stakeholder’ is a much broader category than ‘shareholder’.

Shareholders own shares in companies and benefit financially from the success of those businesses. Because of this direct involvement, we classify them as internal stakeholders.

Although a shareholder is also a stakeholder, not all stakeholders are shareholders.

  Who are stakeholder vs shareholder difference. types of stakeholders in a business. stakeholder definition. Business Studies basics. Grade 12 NCS. South African

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Other Articles Related to This

To read the other articles related to stakeholders and social responsibility, you can click on the following links:


Cambridge Dictionary. Stakeholder. [2020/04/21]

Corporate Finance Institution. What is a Stakeholder? [2020/04/20]

Lumen Candela. Business Stakeholders. [2020/04/20]

Stakeholder Map. What is a Stake? Meaning of Stake. [2020/04/20]