What Are Business Stakeholders?

Everyone who has a stake in the success of your business is a stakeholder.

When you think of stakeholders in business, your mind might first go to shareholders.

And while shareholders are certainly one type of stakeholder, they’re not the only ones. In fact, there are several types of business stakeholders.

Here’s a quick overview of each.

Shareholders

Shareholders are the people who own shares in a company.

They may be individuals, groups, or even other companies.

Shareholders have a financial stake in the company and want to see it succeed in order to maximize their investment.

Debtholders

Debtholders are the people or groups who have loaned money to the company.

Like shareholders, they want to see the company succeed so that they can get their money back (plus interest).

Other Securities Holders

There are other securities holders, such as preferred shareholders that may be considered a type of hybrid investment between debt and equity.

Employees

Employees are obviously a key stakeholder group for any business.

They provide the labor that keeps the company running and, as such, have a vested interest in its success.

Not only do employees want to be paid fairly, but they also want to work for a company with good prospects for the future.

Employees want to see the company do well so that they can keep their jobs and receive raises and promotions.

Some employees may also be shareholders, as that’s how they might receive part of their compensation.

Customers

Customers are another obvious stakeholder group.

Without customers, businesses would have no revenue and would quickly go out of business.

Customers are the people or businesses who purchase the company’s products or services.

They want to see the company provide high-quality goods or services at a fair price.

As such, it’s in the company’s best interest to keep its customers happy.

Suppliers

Suppliers provide the raw materials or other inputs that the company needs to produce its products or services.

They, too, have a financial stake in the company’s success and want to see it do well.

The better the company does, the more business they’re likely to get from it.

Government Agencies

Depending on the business, government agencies may also be considered stakeholders.

For example, businesses that are regulated by the government (such as banks) need to stay on good terms with their regulators.

Businesses that receive government contracts also need to maintain a good relationship with the agencies they’re working with.

Community Members

In some cases, community members may also be considered stakeholders.

For example, a company that wants to build a factory in a particular town will need the support of the community members.

Otherwise, they may face opposition and delays.

Stakeholders | What is a Stakeholder?

FAQs – Business Stakeholders

What are shareholders?

Shareholders are people who have invested money in a company by purchasing shares. They want to see the company do well so that their investment will increase in value.

What is a debtholder?

A debtholder is someone who has loaned money to a company and is expecting to be repaid (plus interest).

Are employees considered stakeholders?

Yes, employees are the people who work for a company, so they have a vested interest in the company’s success because they rely on it for their livelihood.

Are customers considered stakeholders?

Customers are the people or businesses who purchase the company’s products or services. The company needs to keep them happy in order to stay in business, so customers can be considered a stakeholder.

Are suppliers considered stakeholders?

Suppliers provide the raw materials or other inputs that the company needs to produce its products or services. They want to see the company do well so that they can continue doing business with it.

Is a government agency considered a stakeholder?

A government agency is a department or organization of the government that has some sort of jurisdiction over a particular area.

Businesses may be regulated by government agencies or may do business with them (such as through contracts).

So yes, in some cases a government agency may be considered a stakeholder in a company.

Conclusion – Business Stakeholders

There are many different types of business stakeholders outside just the owners or shareholders themselves.

Each has their own interests and goals, which may or may not align with those of the company.

It’s important for businesses to identify all their stakeholders and understand what each group wants.

Only then can they develop strategies for managing stakeholder relationships effectively.