Stakeholder versus Stockholder Essay Example for Free

Stakeholder versus Stockholder Essay Stakeholders and stockholders have similarities and differences. A stakeholder is any person or entity who has an interest in a company. A stockholder is any person or entity who owns stock or shares of a particular company. A stockholder is also a stakeholder, but a stakeholder is not necessarily a stockholder in a company. Examples of stakeholders are employees, vendors, manufacturers, board members, or customers. These examples may or may not hold actual stock in the company. A stockholder will always be a stakeholder because if one owns stock in company there will always be an interest in making sure the company does well to increase stock value. Specifically, an employee may own stock in his company and be a stakeholder by employment. A customer may not own stock in the company, but has a legitimate interest as a stakeholder in receiving a high-end deliverable product. The stakeholder view differs from the stockholder in that stakeholders value the outcomes of joint ventures that benefit both the stockholder and a stakeholder such as an employee. Stakeholders value the contribution all players provide in making a company successful and focus on preserving the company image and brand at all costs (wikipedia, 2006). The stockholder view is driven by profit and rate of return on investment. Stockholders have often been given a preeminent role in guiding and controlling company strategy due to monetary investments at stake. The stakeholder view or concept states that the company’s responsibilities are to all of the stakeholders. The stakeholder view is used to improve brand image, although with increased costs; and makes the firm less likely to be targeted by outside pressure groups. The stakeholder view is used to fill the needs and wants of many different people from owners to local populations by integrating resource and market-based views. Reference http://en.wikipedia.org/wiki/Stakeholders