Difference between stakeholder and shareholder

Posted By: Sm Adminon: January 03, 2016In: Miscellaneous

Stakeholder:
Stakeholder is a person or organization that has a legitimate interest in a project or entity. Stakeholders can affect or be affected by the organizations actions, objectives and policies. The types of stakeholders are: primary stakeholder and secondary stakeholder. A stakeholder can affect the activities of the business. The stakeholder concept was used in 1963 international memorandum at the Stanford Research Institute.
Shareholder:
The person, company or institution which owns at least one share of company’s stock is called shareholder. Shareholders are the owners of the company. They have potential to profit if the company does very well and they have potential to loose if the company does poorly. A shareholder is also known as stockholder. They can inspect the company’s books of account whenever they wanted to. Shareholders can attend the company’s Annual General Meeting and have right to know about the company’s performance.
Differences:

Basis	Stakeholder	Shareholder
Definition (www.oxforddictionaries.com)	A person with an interest or concern in something, especially a business.	An owner of shares in a company.
Synonyms	Follower, adherent, bookie, ambassador, capitalist, boss	Stockholder, bondholder, participator, depositor, accomplice, investor, sharer
Types	The types of stakeholder are: Primary stakeholders Secondary stakeholders Key stakeholders	The types of shareholder are: Individual investors Institutional investors
Role	Stakeholders may or may not be shareholders.	All shareholders can be considered as stakeholders.
Word origin	The word stakeholder was originated in between 1700-10.	The word shareholder was originated in between 1785-95.
Affects	Stakeholders are directly or indirectly affected by whatever happens to the company.	Shareholders are affected directly by whatever happens to the company.
Type of involvement	Stakeholders have no such involvement with the company in any financial or legal way.	Shareholders have a legal involvement concerning the rights to directly affect a company’s policies and actions.
Attributes	Its advantages are: Unique insight into issues Secure resources Build trust Increase transparency Better decision making	Its advantages are: Decision Discounts Voting right
Disadvantages	Its disadvantages are: Responsibility Communication Control Failure	Its disadvantages are: Organize the AGM for voting
Example in Sentence	He is the direct stakeholder if the company because he held the significant amount of the stock The stakeholders are creditors, investors, employees, customers and suppliers.	His father had been a shareholder of Macro Company for a very long time. More than 50% shareholder’s acceptance is necessary to finalize the decision.