Corporate Stakeholders and Their Roles

Topics: Stock, Employment, Shareholder Pages: 4 (711 words) Published: February 7, 2010
Corporate stakeholders and their roles

A corporate stakeholder is a party that affects or can be affected by the actions of the business as a whole. Corporate stakeholders can also refer to those groups without whose support the organization would cease to exist.

The following are some of corporate stakeholders and their roles:


An employee is a person in the service of another under any contract of hire, express or implied, oral or written, where the employer has the power or right to control and direct the employee in the material details of how the work is to be performed.

In a commercial setting, the employer conceives a productive activity, generally with the intension of making a profit, and the employee contributes labor to the enterprise usually in return for payment of wages.


A shareholder is an individual or company (including a corporation) that legally owns one of more shares of stock in a joint stock company.

Shareholders can perform various roles depending on the class of stock they hold. Some of their activities may include: ➢ Voting on matters such as elections to the board of directors ➢ They can propose shareholder resolutions

➢ They also play an important role in raising capital for organizations


A creditor is a party (person, organization, company or government) that has claim to the services of a second party. It is a person or institution to whom money is owed.

The first party in general has provided some property or service to the second party under the assumption (usually enforced by a contract) that the second party will return an equivalent property or service.

The creditor lends property, service or money to the organization.


An investor is any party that makes an investment.

Investors are also persons or companies that purchase equity or debt securities for financial gain in exchange for funding an expanding company.


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