Stakeholder — a person or entity that has an interest in the positive performance of a company. An example can be shareholders: they are always stakeholders as they incorporated the business in Singapore and directly invest in it. Other types of stakeholders can include directors, employees, suppliers, and customers that rely on the company to provide a source of income, product, or service.
Who are stakeholders in my company?
First and foremost, the investors in your business are regarded as stakeholders. They are not the only ones, but usually the first ones to take into consideration since their actions might affect the future of your company. The simplest example is the board of directors, where your executives and shareholders gather to make decisions that define the direction the business will take. However, there are other stakeholders you need to recognize. Your employees define the service and the product you provide. Your customers ensure your income and reputation. The government might have interest in supporting with grants and exemptions as your company plays a vital role in the country's economy. Your supliers rely on you to support their production or service demand.
What you need to know about Stakeholder
Stakeholders may vary in the rights and interests regarding the company. For example, the customers expect fair treatment and quality service or products, while the employees need protection and security. Thus, changes in the company may affect the stakeholders in different ways. While the customers will benefit from lower prices, the employees might suffer from layoffs necessary to keep the costs down.