Distinguish Between Shareholder and Stakeholder in a Business Context. Comment on the Influence of Shareholders on the Management of a Company and Its Allocation of Rewards.
This paper specifically tries to distinguish between shareholder and stakeholder in business context. Firstly, there will be analysed main ideas of stakeholder theory, main principles of it. Secondly, the importance and characteristics of stakeholder interdependence will be shown. Thirdly, clear identification of main stakeholder groups and relationship between those groups will be outlined. In order, to distinguish shareholders from other stakeholders there will be paragraph analysing identity of this group. This analysis is followed by exceptionally important rights of shareholders which are giving them power to influence both company’s direction and through this other stakeholders.
Stakeholder theory and concept
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As Clarkson (1995) argues, making corporate social responsibility a business objective is best undertaking by changing intangible social and environmental issues into tangible stakeholder interests. Thus stockholder approach fits perfectly within the view of the company that strives to deliver sustainable value to its various stakeholders.
A shareholder is any person who owns stock issued by a corporation- so