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Write the difference between shareholder and stakeholder.
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.
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