Difference between Shareholders and Stakeholders?

Difference between Shareholders and Stakeholders?

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Created By Admin Last Updated Wed, 05-Aug-2020

Difference between Shareholders and Stakeholders?

Shareholders and Stakeholders are time and again used interchangeably, as many of us think that they are one and the same.

However, the two terms don’t mean the same thing. A shareholder is an owner of a company as determined by the number of shares they own. A stakeholder does not own part of the company but does have some interest in the performance of a company just like the shareholders.

However, their interest may or may not involve money. For example, employees of a company because they rely on the company for their job; local and national governments because of the taxes the company must pay annually.