Shareholders vs Stakeholders | Business Studies

This presentation explores the fundamental differences between the shareholder concept and the stakeholder concept in business. The shareholder concept emphasises maximising profits for shareholders, while the stakeholder concept advocates for the interests of all parties involved, including employees, customers, and the community. Join us as we delve into the implications of each approach and discuss their relevance in today's business environment.

1. Shareholders
Stakeholders
Versus

2. The Shareholder Concept
•A shareholder has an ownership stake in a company by
providing part of the capital.
•The shareholder concept emphasises the importance of
the shareholder over the other stakeholders.

3. The Stakeholder Concept
•A stakeholder is any person or group interested in the
performance of a business, e.g. creditors, government,
employees and customers.
•The stakeholder concept emphasises the importance of
catering for other stakeholders apart from the
shareholders.

4. Why is Stakeholder Theory important?
•The stakeholder theory or concept is a modern approach
which is based on the fact that the long-term
profitability of the business can only be assured if all
parties or stakeholders are happy.