A stakeholder is someone who has a vested interest in a business, usually a financial interest.
Stakeholders are the ones who are affected by how the business is doing. In a business, the main stakeholders are investors, employees, clients, and suppliers.
Internal stakeholders
Internal stakeholders are the ones that work in the business or that have a direct relationship with the business. That includes employees—some employees can have more of a stake than others—the business owners, the CEO, the board, the investors and so on,
For example, if a business decides to launch a new product, the stakeholders for that particular project would be the people working directly with the product, the product owner, the marketing and sales department, and ultimately, the CEO. They have a vested interest in the product being a success.
External stakeholders
External stakeholders are anyone who does not work or invest in the company, but who can still be affected by the actions of the business. Examples include suppliers and creditors.
For example, if a business is struggling financially and not paying its bills on time, it will affect the suppliers. They’ll be getting less money—or getting paid later than expected—which might cause them to struggle financially too. They’re not employed by the business, but they have a stake in how the business is doing.
Stakeholder versus shareholder
A shareholder is a business or an individual that owns shares—also called stocks—in a company. A shareholder is a type of stakeholder.
Since they own the company, they will benefit if it profits, for example by getting paid dividends on their shares—and likewise they can lose their investment if the company goes badly, or worst case, goes bankrupt.
However, not all stakeholders are shareholders. There are many people who are affected by the success or struggles of a business, whether they own shares in the company or not.