Glossary - Stakeholder
A stakeholder in a company or project is an individual, group, or organization that has an interest or concern in the organization. Stakeholders can affect or be affected by the organization's actions, objectives, and policies. The term is widely used in business to refer to anyone who has a vested interest in the health and success of a business or entity. It encompasses both internal parties, such as employees and shareholders, and external parties, such as suppliers, creditors, and the community.
Also known as
- Interested Party
Use cases examples
- Corporate Governance Policies: Our corporate governance policies are designed to balance the interests of all our stakeholders, including employees, customers, and shareholders.
- Annual Report: This report outlines our performance over the past year, not only from a financial perspective but also how we have engaged with and contributed to our wider community of stakeholders.
Considerations for investors
- Evaluating a company's relationship with its stakeholders can provide insights into its corporate governance and long-term sustainability.
- Investors should consider how a company's decision-making process incorporates stakeholder interests, as this can affect the company's reputation and, ultimately, its financial performance.
Considerations for founders
- Identifying and understanding the priorities of key stakeholders early can help in aligning them with the company's vision and strategy.
- Effective communication with stakeholders is crucial for gaining their support and mitigating potential conflicts.
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