Stakeholders Vs. Shareholders Essay

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Stakeholders vs. Shareholders. Whom exactly should business serve? Introduction A lot is made of mission statements intended to motivate workers or strategies are laid out to encourage innovation, but what about a corporation's mission statement? Should it focus on pleasing shareholders or stakeholders? In this paper I would like to consider in general the issue of stakeholders vs. shareholders, their relative merits and demerits by looking at the point of view of the most influential authors in this field and by looking at the different interests that companies can align themselves with how these decisions affect stakeholders and shareholders. This paper also deals specifically with the issue of who exactly should business serve and in whose interests should CEOs run business. Introducing Stakeholders Stakeholders are the people, group, or organization that has direct or indirect stake in an organization because it can affect or be affected by the organization's actions, objectives, and policies. Key stakeholders in business organizations include creditors, customers, directors, employees, governments, owners (shareholders), suppliers, unions and the community from which the business draws its resources. Buchholtz and Carrol (2009) state that a stakeholder is an individual or a group that claims to have one or more stakes in an organization. Introducing Shareholders Shareholders are any person, company, or other institution that owns at least one share in a company. A shareholder may also be referred to as a "stockholder". A shareholder owns part of a company through stock ownership, while a stakeholder is interested in the performance of a company for reasons other than just stock appreciation. Shareholders are the owners of a company. They have the potential to profit if the company does well, but that comes with the potential

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