Question

What do you think about this so-called “Shareholder vs. Stakeholder” debate? Do you have any personal experiences where you have observed the effects of this debate in terms of corporate actions? On which side of the argument do you come down on and why?

Answer 1

Shareholder vs. Stakeholder is a phrase that states that shareholders can always be stakeholders, but stakeholders cannot be shareholders. Shareholders have the part of any public company's share, which makes them the owner of that company with the part of the percentage they hold in that company's share. It also states that if that public company earns profit, the shareholders will also earn money. Moreover, if we talk about stakeholders, then they show interest in the company's performance and invest according to them in the various companies. Yes, there are many cases where debate occurs, and every person has opinions regarding this topic. Most of the times, people prefer to become shareholders instead of stakeholders because they get the freedom to buy and sell their shares of any public company anytime, but in case of stakeholders, the person is bound to hold the share for longer time no matter if the company is earning profit or loss. A shareholder owns a company's share according to his choice, but stakeholders need to see the companies prosper and often hold the share for a more extended period.