Tag: internal & external stakeholders and distinction between shareholders, stakeholders and customers

 An investor contributes asset in a form of capital or equity. Investors invests capital or wealth in any company or financial market to receive some financial gain in return.

Maximizing shareholder value is a very limited concept and distracts everyone from what the purpose of a company is or should be- this is a true statement. Maximizing the number of shareholders should be the purpose of a company.

Creditors are the external stakeholders of a company- this is a true statement since creditors belong to the entities outside the business organization. Like creditors, officials and suppliers are also external stakeholders.

Internal stakeholders are people who are already committed to serving your organization as board members, staff and managers. Internal stakeholders are referred as entities within business organization.

Stakeholders of a company does not include technology since technology does not have any interest with business. It does not get affected by the business activities.

 A creditor contributes asset in the form of debt or liability. Company or business organization owes money to creditors, thus, creditor contributes money in the debt or liability form.

Customers are one of the most immediate external stakeholders that a company must consider.External stakeholders belong to the entities outside the business organization. Like customers, officials and suppliers are also external stakeholders.