Stakeholder

Dictionary Says

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 Says

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.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Self-Interest

    Acting in the ...
  2. Best Practices

    A set of ...
  3. Shareholder

    Any person, ...
  4. Corporate Governance

    The system of ...
  5. Retail Investor

    Individual ...
  6. Consent Solicitation

    The process by ...
  7. Minimum Wage

    The minimum ...
  8. Cum Rights

    A shareholder of ...
  9. Sticky Wage Theory

    An economic ...
  10. Corporate Finance

    1) The financial ...

Articles Of Interest

  1. Governance Pays

    Learn about how the way a company keeps its management in check can affect the bottom line.
  2. Evaluating A Company's Management

    Financial statements don't tell you everything about a company's health. Investigate the management behind the numbers!
  3. The Basics Of Corporate Structure

    CEOs, CFOs, presidents and vice presidents: learn how to tell the difference.
  4. 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."
  5. Knowing Your Rights As A Shareholder

    We delve into common stock owners' privileges and how to be vigilant in monitoring a company.
  6. What Owning A Stock Actually Means

    Think owning a stock gives you special privileges with the company? Think again.
  7. Carl Icahn's Investing Strategy

    Buying up failing investments and turning them around helped to create the "Icahn lift" phenomenon.
  8. Finding Solid Buy-And-Hold Stocks

    Find out how to look at the big picture - even when the market's short-term outlook is less than rosy.
  9. Female Managers Can Raise Share Values

    Women are quite capable of proving their worth in raising corporate value through various financial, managerial and human capabilities.
  10. Introduction To Incentive Stock Options

    Here are some basic highlights of how ISOs work and the ways they can be used.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center