Is Shareholder different from stakeholder? | Shareholder and Stakeholder are not same!

The following are the differences between shareholders and stakeholders:

1. The person holding the shares of the company is known as Shareholders. The party having a stake in the company or organization is known as Stakeholder.
2. Shareholders are the owners of the company as they had bought the financial shares, issued by the company. Conversely, Stakeholders are the interested parties who affect or gets affected by the company’s policies and objectives.
3. Shareholders are a part of the Stakeholders. It can also be said that shareholders are stakeholders, but the stakeholders are not necessarily the shareholders of the company.
4. Shareholders lay emphasis on the return on their investment made in the company. On the other hand, Stakeholders focuses on the performance, profitability, and liquidity of the company.
5. The scope of stakeholders is comparatively wider than the shareholders because there are other constituents also apart from shareholders.
6. Only the company limited by shares have shareholders. However, every company or organization have stakeholders, whether it is a government agency, nonprofit organization, company, partnership firm or a sole proprietorship firm.

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