A shareholder owns the shares of the company. A stakeholder is a member of group that has interest in the company’s business for multiple reasons apart from just stock performance and can affect or be affected by the business.

Primary Social stakeholders are: Shareholders and investors. Employees and managers. Customers.

The shareholder model of the corporation is a term referring to a theory of corporate governance that argues the people who own shares of a corporation’s stocks, shareholders, should own and manage the corporation with a view to maximizing the financial returns on their investments.

Stakeholders can affect or be affected by the organization’s actions, objectives and policies. Some examples of key stakeholders are creditors, directors, employees, government (and its agencies), owners (shareholders), suppliers, unions, and the community from which the business draws its resources.

A stakeholder analysis is a process of identifying these people before the project begins; grouping them according to their levels of participation, interest, and influence in the project; and determining how best to involve and communicate each of these stakeholder groups throughout.

10 Reasons Why a Stakeholder Management System is Your Next Competitive Advantage

• 10 benefits of a Stakeholder Management System.
• Build better relationships.
• Paint a rich picture of your stakeholders.
• Be the early bird, get that worm.
• Put resources where they’re needed.
• Protect your reputation.
• Make better decisions.

Key Benefits for Stakeholders of Communication and Engagement

• Offers greater opportunities to contribute directly to systems development as well as policy and program development.
• Leverages stakeholder expertise.
• Makes lines of communication more open and transparent.
• Increases accountability of CCDF Lead Agency.