Stakeholder
Definition of 'Stakeholder'A party that has an interest in an enterprise or project. The primary stakeholders in a typical corporation are its investors, employees, customers and suppliers. However, modern theory goes beyond this conventional notion to embrace additional stakeholders such as the community, government and trade associations. |
|
Investopedia explains 'Stakeholder'A common problem that arises with having numerous stakeholders in an enterprise is that their various self-interests may not all be aligned. In fact, they may be in conflict with each other. The primary goal of a corporate enterprise from the viewpoint of its shareholders is to maximize profits and enhance shareholder value. Since labor costs are a critical input cost for most companies, an enterprise may seek to keep these costs under tight control. This may have the effect of making another important group of stakeholders, its employees, unhappy. The most efficient companies sucessfully manage the self-interests and expectations of its stakeholders. |
Related Definitions
Articles Of Interest
-
Evaluating A Company's Management
Financial statements don't tell you everything about a company's health. Investigate the management behind the numbers! -
The Ups And Downs Of Initial Public Offerings
Initial public offerings aren't the best option for every company. Consider these factors before "going public." -
Knowing Your Rights As A Shareholder
We delve into common stock owners' privileges and how to be vigilant in monitoring a company. -
Governance Pays
Learn about how the way a company keeps its management in check can affect the bottom line. -
What Owning A Stock Actually Means
Think owning a stock gives you special privileges with the company? Think again. -
The Basics Of Corporate Structure
CEOs, CFOs, presidents and vice presidents: learn how to tell the difference. -
The Path To Becoming A CEO
Think you have what it takes to be chief executive? Find out what those at the top have in common. -
Wall Street’s Glass Ceiling
It’s tough to boast that there are more female CEOs than ever before when they make up only 4.2% of the total. -
Is Lululemon's Chief Product Officer to Blame For Sheer Debacle?
Lululemon announced April 3 that Chief Product Officer Sheree Waterson was leaving the company as of April 15. Assigning blame might appease the board, but it shouldn't do anything for investors. -
Schulze Plus Joly Equals Success?
Best Buy founder Richard Schulze announced March 25 that he was dropping his bid for the company and rejoining the board as Chairman Emeritus. Two other former board members are rejoining as ...
Free Annual Reports