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Distinguish Between Shareholder and Stakeholder in a Business Context. Comment on the Influence of Shareholders on the Management of a Company and Its Allocation of Rewards.

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Introduction
This paper specifically tries to distinguish between shareholder and stakeholder in business context. Firstly, there will be analysed main ideas of stakeholder theory, main principles of it. Secondly, the importance and characteristics of stakeholder interdependence will be shown. Thirdly, clear identification of main stakeholder groups and relationship between those groups will be outlined. In order, to distinguish shareholders from other stakeholders there will be paragraph analysing identity of this group. This analysis is followed by exceptionally important rights of shareholders which are giving them power to influence both company’s direction and through this other stakeholders.

Stakeholder theory and concept …show more content…

All stakeholders can be expected to be interested in and possibly wish to influence the future direction of the organization (Lynch, 2003).
Stakeholder analysis can be used to identify a link between internal analysis and external analysis. Internal stakeholders are the management, the different departments within the organization and its employees. The needs, wants and motivating factors for each of these groups are different. What may please management could cause unease among the workforce. On their own, any group is able to completely influence the direction and activities of the company. There are groups, however, who posses greater power than others.
External stakeholders cannot simply be identified or listed; they differ between organizations and industries. However, external stakeholders may be grouped into segments which are frequently involved in the organization’s activities: owners (shareholders), suppliers, customers and financiers. Other groups which could also have stakeholder status for an organization are the government (central and local), guilds and associations, and pressure groups who may or may not have an interest in the success of an organization with its present or future activities (Cook & Farqularson, 1998).
It is important to understand that different groups of stakeholders

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