*Basic

A shareholder owns part of a public company through shares of stock, while a stakeholder has an interest in the performance of the company for reasons other than stock performance.[1] Shareholders are always stakeholders in a corporation but stakeholders are not always shareholders.[2]

**Intermediate

A shareholder can sell their stock and buy different stock; they do not have a long-term need for the company. Stakeholders are bound to the company for the longer term.[3] Employees are stakeholders and have a vested interest in the company over the longer term so they keep their jobs.[4]

***Advanced

The emergence of “corporate social responsibility” has encouraged companies to take the interests of all stakeholders into consideration.[5] Companies, for example, consider their impact on the environment now, instead of making decisions solely in the interests of profit for shareholders.[6]

Sources

[1] Smith, H.J (2003) The Shareholders vs. Stakeholders Debate. MIT Sloan Management Review
[2] Banton, C (2021) Shareholder vs Stakeholder: What's the Difference? Investopedia. Investopedia.com
[3] Filabi, A (2020) Shareholders vs Stakeholders: Balancing Financial Ethics and Business
[4] Editors (2019) Capitalisn't: Shareholders vs Stakeholders. CBR. Review.chicagobooth.edu
[5] Ronnegard, D; Smith, N.C (2013) Shareholders vs Stakeholders: how liberal and libertarian political philosophy fames the basic debate in business ethics
[6] Yosie, T. F (2019) Shareholders vs stakeholders: Fundamental changes in an old debate. Green Biz. Greenbiz.com