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stakeholder

STAYK-hohl-dur /ˈsteɪkhoʊldər/

nounB2IELTSTOEFLGMAT

Professional

A person, group, or organization that has an interest or concern in an organization or project.

Stakeholders can be internal (employees, managers) or external (customers, suppliers, the community).

The story behind the word. In the 1700s, a 'stakeholder' was a literal person who held the 'stakes' (the money or bets) for two people during a wager. They were a neutral third party with an interest in the outcome. Today, it refers to anyone with a 'stake' in a project's success.

Word relationships

interested party: 'Interested party' is more legalistic and less common in general business management than 'stakeholder'.
collaborator: A collaborator actively works on the project, while a stakeholder may simply be affected by it.

outsider: An outsider has no interest or influence in the project whatsoever.

Commonly confused with

shareholder: A shareholder owns part of the company; a stakeholder is anyone affected by the company's actions.

Word family

stakeholders (noun): Plural form of stakeholder.

Collocations

key stakeholder
stakeholder engagement
stakeholder management
internal stakeholder

Example sentences

"The CEO met with every major stakeholder to discuss the merger's impact on the local community." Corporate Governance
"Identifying the key stakeholder early in the process prevents late-stage objections." Project Management

Memory hook

Imagine someone holding a wooden 'stake' in the ground to mark their territory or interest. If they have a 'stake' in the game, they are a stakeholder.

When not to use

Do not use 'stakeholder' if you are only referring to owners or shareholders; it is a broader term.

Fun facts

The term was first used in a business context at the Stanford Research Institute in 1963.
In some legal contexts, a stakeholder is still a person who holds money while a dispute is settled.