\n \n \n <\/a>\n <\/div>\n \nFurthermore, company directors have a legal obligation to consider the company\u2019s different stakeholders when making decisions. This is specifically detailed in section 172 of the Companies Act 2006, which demands directors promote the company’s success. Part of that success includes having regard for the company\u2019s stakeholders when making decisions – including its employees, the local community, and the environment.<\/p>\n
Key differences<\/h3>\n Both groups share some similarities; however, a significant difference between stakeholders is their actual ownership of a company.<\/p>\n
Whereas shareholders own a company, other stakeholders usually do not (unless they also happen to be shareholders). That\u2019s not to say other stakeholders don\u2019t have any control. While they don\u2019t hold any company shares, they do have the power to influence a business\u2019 processes and be affected by them.<\/p>\n
Another important distinction is priorities. Shareholders sometimes prioritise profit, while other stakeholders may be more inclined to concern themselves with the company\u2019s long-term performance. They might aim to maintain strong supplier relationships, create a positive workplace environment for staff, or improve customer satisfaction. Some of these initiatives may ultimately be financially advantageous, but the main priority lies in the broader benefit to the company.<\/p>\n
Ultimately, different stakeholders in different companies will have other priorities. What connects them is that they have an interest in, or are affected by, the company and its operations.<\/p>\n
Thanks for reading<\/h3>\n It\u2019s easy to confuse the terms \u2018shareholder\u2019 and \u2018stakeholder\u2019. They are often used interchangeably, but that\u2019s not strictly correct. The key takeaway is that shareholders own the company, and stakeholders have an interest in its activities.<\/p>\n
We hope you found this blog helpful. If you have any questions, please post them below.<\/p>\n"},"excerpt":{"rendered":"
As a business owner, you\u2019ll come across many corporate buzzwords. Two such words are \u2018shareholder\u2019 and \u2018stakeholder\u2019. You might already know what these mean, or you may have an idea, but for some entrepreneurs, they\u2019ll be entirely new concepts. In this post, we explain the differences and similarities between stakeholders and shareholders, and the roles…<\/p>\n","protected":false},"author":27,"featured_media":12420,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false},"categories":[141],"tags":[],"class_list":["post-12382","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-shares-shareholders","category-141","description-off"],"acf":[],"yoast_head":"\n
Shareholder vs Stakeholder - What's the Difference? | QCF<\/title>\n \n \n \n \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n \n \n\t \n\t \n\t \n","yoast_head_json":{"title":"Shareholder vs Stakeholder - What's the Difference? | QCF","description":"People often mix up 'shareholders' and 'stakeholders'; we explain their differences and the roles they play in a company. Let's get started.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.qualitycompanyformations.co.uk\/blog\/shareholder-vs-stakeholder\/","og_locale":"en_GB","og_type":"article","og_title":"Shareholder vs stakeholder - what\u2019s the difference?","og_description":"People often mix up 'shareholders' and 'stakeholders'; we explain their differences and the roles they play in a company. 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