The advantages and disadvantages of stakeholders must be understood and managed in order for companies to navigate in the business world. In general terms, a stakeholder is any individual who has an interest in the success or failure of a business. Traditionally, individuals with a vested concern about how the company is run are considered stakeholders. This includes owners, shareholders or members (in the case of limited liability companies or LLCs), and investors in the company.
In addition, employees who depend on the business for their livelihood, suppliers who have entered into agreements with the company and partners who rely on the company to fulfill contractual obligations are looked upon as stakeholders.
However, a stakeholder’s interest in a business need not only be defined monetarily or by ownership shares in a corporation. It can include parties that interact with a company and share common concerns and interests. Thus, religious groups and political parties can be considered stakeholders if the position taken by a company can affect their membership favorably or adversely. This is also true of media companies whose subscribers depend on news about the business to make financial or lifestyle decisions.
Answers & Comments
Answer:
The advantages and disadvantages of stakeholders must be understood and managed in order for companies to navigate in the business world. In general terms, a stakeholder is any individual who has an interest in the success or failure of a business. Traditionally, individuals with a vested concern about how the company is run are considered stakeholders. This includes owners, shareholders or members (in the case of limited liability companies or LLCs), and investors in the company.
In addition, employees who depend on the business for their livelihood, suppliers who have entered into agreements with the company and partners who rely on the company to fulfill contractual obligations are looked upon as stakeholders.
However, a stakeholder’s interest in a business need not only be defined monetarily or by ownership shares in a corporation. It can include parties that interact with a company and share common concerns and interests. Thus, religious groups and political parties can be considered stakeholders if the position taken by a company can affect their membership favorably or adversely. This is also true of media companies whose subscribers depend on news about the business to make financial or lifestyle decisions.