What is the difference between Shareholders and Stakeholders?

Shareholders and stakeholders may seem the same in the beginning, but they are not the same. A shareholder will own a part of the company because of the shares that the shareholder may have. A stakeholder will be more focused on the overall performance of the company.

The stakeholder will be affected more by the actions that the company will decide to do in the future. The scope of the stakeholder will be far more vast as compared to what the shareholder will consider. Usually, stakeholders will deal with the company in various ways. Shareholders have acquired a portion of the company by purchasing the shares or stocks of the company.

Shareholders and stakeholders are not the same. The differences between the two terms can be clearly explained when you consider what they actually mean. Shareholder is a person that has contributed financially to a company and as a result, he is entitled to be receiving a share of company's income. This means the person is at the mercy of whatever becomes the future of the company. In order words, a shareholder is someone who has stock with a company and has indirectly becomes part of the owners of the establishment.

Stakeholder, on the other hand, is someone with a legitimate interest in a given enterprise. Stakeholders, in order words, are people who are always after the progress of an establishment. For example, a worker in a company is a stakeholder. It should be noted that, a shareholder can also be called a stakeholder because he has interest in the company, but stakeholders are not shareholders.