What is a Stakeholder and How Do You Become One?
According to one Gallup poll, about 55% of Americans own stock in a company.
This is one way to be invested in a company, but there are many other ways as well!
But what is a stakeholder? And how do you become one? Keep reading to find out!
Table of Contents
A stakeholder is a party who is invested in making sure a business or organization succeeds. They will help to offer different perspectives and opinions to get results and make decisions.
They also want to make sure that all of the investments are honored.
There are many different types of stakeholders, and they all play different roles in helping a company succeed.
You might even realize that you’re one of these types of stakeholders already!
Customers can actually hold a stake in a company, and that stake is the service quality, value, and product.
Many people say that businesses exist to serve the customer, so without the customer, the business couldn’t run. They’re the ones who will be impacted by the services or products and the value.
For example, passengers on an airplane are putting their life and trust in the pilot’s hands. Therefore they have a stake in making sure they choose the most reliable airline.
Investors are your typical stakeholders because they are the ones who want to see financial returns. Investors can both be shareholders and debtholders as well.
Because of this, investors normally care about the concept of shareholder value as well.
Employees also care about the business because they want the business to grow and so that they can have job security. They want to earn an income to support themselves, and they also want non-monetary benefits like health insurance.
Some employees may also have a stake in making sure their safety and health are respected while at work. This is more common in industries like construction, transportation, oil, gas, or mining.
One of the bigger stakeholders in a company is also managers. They have to ensure that their employees are doing the job and executing the strategy to help the business be successful.
However, managers also have their own tasks that they need to perform to ensure that the business is reaching certain goals and objectives. If you’re looking for ways to implement new changes to improve your company, check out this!
The community is also involved in ensuring that your business is doing well. They want to ensure that jobs are created, employees are healthy and safe, and that you’re helping to improve the economy in their area.
Whether you’re a small or a large business, you’ll have some kind of impact on the incomes, spending, and employment in that area.
Some companies may even have a health impact on communities, like a factory, for example.
Suppliers and vendors you work with will also want to ensure that your business keeps running.
They’ll need it in order to generate their own income so that they can keep running. They also want to make sure that you’re running a safe and healthy operation, because they’ll have to directly work with you.
We mentioned earlier that an investor can also be a shareholder, but there are differences between that and a stakeholder.
A shareholder is normally a company, institution, or individual that owns at least one share of the company. That means that they have a financial interest in the company.
A shareholder can decide to sell their stock and buy a different one, which means they don’t rely on that company long-term if they don’t want to. Stakeholders are bound to the company because they have more investment in it that isn’t always monetary.
For example, if a company is losing money, a shareholder can just sell their stocks and move on. A stakeholder (like an employee) could risk losing their jobs, which would make it a lot harder for them if the company went under.
Stakeholders can really help businesses grow. In fact, businesses rely on stakeholders to help them keep growing.
This might mean that they start a new project, introduce new products, or come up with a better workflow. You can help businesses you care about to achieve these things by putting your energy, time, and money into businesses you think have potential.
If you’re a stakeholder and a shareholder, you’ll also be able to have a say in some of the inputs and decisions that are made for certain projects or businesses.
Are you interested in becoming a stakeholder in a company? Each company will have its own different way for you to join.
However, you can start by simply living in a community where the business is. If you’re interested in the company, you can even apply for openings at the company and see if you can become an internal stakeholder.
You could also become a customer of the company and carefully choose where you spend your money.
These are only a few things to learn about: “What is a stakeholder?”, but there are many more things to consider.
We know that joining or running a business can be stressful, but we’re here to help you out.
If you enjoyed this article, make sure that you explore our website to find more articles just like this one.
Moisturizing cream is an effective way of nourishing your skin and giving it proper hydration.…
A traumatic brain injury (TBI) is more than a physical injury. It's a life-altering event…
Located amidst the grandeur of Western Canada lies a gem of unparalleled beauty - the…
Depending on what your company sells, business packaging solutions may be necessary. It’s likely, in…
The trusty oven often finds itself at the bottom of the cleaning list. That’s not…
Customer loyalty and retention are vital for the growth and sustainability of startups. These concepts…
This website uses cookies.