stakeholder
STAYK-hohl-der
/ˈsteɪkhoʊldər/
A person, group, or organization that has an interest or concern in an organization.
A stakeholder is not always a 'shareholder' (an owner). Stakeholders can include employees, customers, suppliers, and even the local community.
The story behind the word. Originally, a stakeholder was someone who held the 'stakes' or bets for two other people during a wager. In the 1960s, the term was adopted by management theorists to describe anyone who has a 'stake' in the success of a business.
Word relationships
- interested party: Interested party is a more general, less formal term.
Commonly confused with
- shareholder: A shareholder owns part of the company; a stakeholder is anyone affected by the company.
Collocations
- key stakeholder
- stakeholder engagement
- stakeholder analysis
- internal stakeholder
Example sentences
- "The company must balance the needs of its shareholders with the concerns of other stakeholders, like the environment." Discussing corporate responsibility.
- "We need to invite every key stakeholder to the meeting to ensure we have their support for the new policy." Describing a project meeting.
Memory hook
Think of someone holding a wooden 'stake' in the ground to claim their territory or interest. Stakeholder = Anyone with a 'stake' in the outcome.
When not to use
Don't use 'stakeholder' if you specifically mean 'owner' or 'investor'; use 'shareholder' for that.
Fun facts
- The 'Stakeholder Theory' was a revolutionary idea because it suggested companies should care about more than just making money for owners.
Related words
Explore more words
shareholder, engagement, supply chain, stewardship, whistleblower, Patron
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