Write the difference between shareholder and stakeholder.

Banking & FinanceManagementCompanies/Organisations

The major differences between shareholder and stakeholder are as follows −

Shareholder

  • They are people who owns the share of the company.

  • They act as owners and are a subset.

  • There are limited shareholders for a company.

  • A company includes equity and preference shareholders.

  • They focus on investment.

  • They have direct impact on financial performances.

  • They have single dimension.

  • The success is measured by value enhancement.

  • Their main aim is to increase profitability, increase dividends, increase share price and maximise shareholders value.

Stakeholder

  • It’s a party who have a stake in a company.

  • They are interested parties and are a super set.

  • Every company/organisation have stakeholders.

  • Stakeholders includes shareholders, creditors, customers, suppliers etc.

  • They focus on performance.

  • They can have direct/indirect impact.

  • The success of a company is measured by satisfaction of stakeholders.

  • They have multi-dimensions.

  • Their main aim is to generate more orders.

raja
Published on 25-Jul-2020 10:47:35
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