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What are Stakeholders and Examples?
When talking about investing in companies both in the form of stocks and bonds, of course the words shareholders and stakeholders cannot be left out of the discussion. Not infrequently lay people interpret shareholder and stakeholder as two terms with the same meaning. In fact, this is not the case. This article will discuss in full what stakeholders are and examples.
What is meant by Stakeholders ?
Stakeholders are usually known as stakeholders or people who have an interest in the company. Basically, the notion of stakeholders is the parties that contribute to and are affected by the success or failure of the company.
Based on this definition, every individual or institution that contributes to the company can be called a stakeholder . This means that the shareholder is part of the stakeholder. But not necessarily the other way around.
Some examples of stakeholders are:
- Employees and management
- And much more
The Role of Stakeholders for Businesses and Companies
Some of the functions and roles of stakeholders for businesses and companies can be summarized in the following three big points:
- First, stakeholders play an important role in providing the things needed by companies to produce goods or services, starting from the provision of raw materials, production factors, to distributing them to consumers.
- Second, stakeholders also play a role in providing funds for the implementation of company activities, for example shareholders, creditors and bondholders .
- Third, consumers are stakeholders who play an important role in providing demand for goods or services produced by companies.
Types of Stakeholders
In general, stakeholders themselves are divided into two types, namely:
Internal stakeholders are parties that come from within the company and contribute to increasing the value of the company from an operational perspective. Some examples of internal stakeholders are employees, management staff, and company owners.
External stakeholders are parties from outside the company who also contribute in the hope of receiving rewards. Some examples of external stakeholders are suppliers or vendors , distributors, consumers, creditors and investors.
What are Stakeholder Rights ?
Another term for stakeholders is the holder or stakeholder. As the name implies, each stakeholder has the right to obtain fulfillment of their respective interests.Stakeholder Internal
Adequate facilities in accordance with their contribution to the company
- Adequate facilities in accordance with their contribution to the company
External Stakeholder Rights
- Payment money
Shareholder vs Stakeholder
You can basically see the difference between shareholders and stakeholders from the definitions between the two. Conceptually, stakeholders have a much different definition and scope than shareholders .
Meanwhile, in terms of contribution and rights, there are differences.
In general, shareholder contribution can be seen from the number of shares purchased or acquired. Based on this contribution, they are entitled to return in the form of dividends, profits from rising share prices, to the value of assets at the time of liquidation.
On the other hand, stakeholders have a more diverse and complex type of contribution, starting from factors of production, labor, to funding. Each of these contributions also generates returns of various kinds.
That’s a complete explanation of stakeholders and shareholders . Hopefully this information is useful for you, huh!