| Definition |
An individual or entity that owns shares in a company. |
Any individual or group affected by or having interest in the company. |
| Ownership |
Has partial ownership in the company through shares. |
May or may not have ownership; includes various parties. |
| Interest |
Primarily financial returns from shares. |
Broader interests including financial, social, environmental, and operational. |
| Examples |
Individual investors, institutional investors. |
Employees, customers, suppliers, community, government, shareholders. |
| Focus |
Maximizing shareholder value and dividends. |
Balancing interests of all affected parties. |
| Decision Influence |
Vote in shareholder meetings, influence major decisions. |
Influence depends on relationship and engagement level. |
| Time Horizon |
Often focused on short to medium-term financial gains. |
Includes long-term impacts on business and society. |
| Legal Rights |
Has legal rights as owners of company stock. |
No specific ownership rights unless also shareholders. |
| Risk Exposure |
Financial risk tied to company performance. |
Varied risks including financial, reputational, operational. |
| Examples of Conflicts |
May push for higher profits even at social/environmental costs. |
May demand ethical practices and sustainability over profits. |
shareholder vs stakeholder
