In some circles, the person holding a stake is likely a vampire hunter. But in the world of investing, the answer to our title question is more mundane. Stakeholders are the people and groups that affect or are affected by a company's actions.
Who are stakeholders?
Company stakeholders include shareholders, employees, customers, suppliers, distributors, creditors, communities, and government agencies. Many investors and corporate leaders add the environment to that list as well.
Some stakeholders are internal and others are external to the organization. Internal stakeholders, such as employees and shareholders, represent the company directly and have a personal interest in the company's success.
External stakeholders have less direct ties to the company. Suppliers, for example, might make more as the company grows, but they usually also have other sources of revenue and profits. The same is true for distributors and creditors. Communities also benefit as a company adds new jobs, but the local quality of life is affected by many other factors.
Capitalism
You can agree or disagree with that argument -- and deploy your money accordingly. Listen to earnings calls and read annual reports to understand a company's approach to stakeholder conflicts. Then decide whether their approach aligns with your own values.
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Salesforce (CRM +0.26%): A broader view of stakeholders
Software company Salesforce holds itself accountable to a broad set of stakeholders, including "shareholders, customers, employees, partners, the planet and the communities in which we work and live ."
To that end, the company annually publishes its Stakeholder Impact Report. The report outlines key initiatives in emissions, renewable energy adoption, workforce diversity and development, philanthropy, and data privacy. The 2022 fiscal year report touched on programs such as:
- The donation of 60 million pieces of personal protective equipment to communities in need.
- The use of the Salesforce platform to manage the administration of 150 million COVID-19 vaccines.
- The donation of $22 million over seven years to promote equal pay for all genders and races.
- A deliberate 50% increase in spending with Black-owned companies.
- The achievement of net-zero residual emissions across sourcing, manufacturing, and marketing.
- The launch of new mental health benefits for employees and expanded delivery of employee development programs.
- Efforts to lobby for regulation that would standardize best practices for data privacy.
The company's perspective on stakeholders heavily influences its programs and initiatives, which go beyond the core task of making money. However, Salesforce does that, too, achieving record revenue, cash flow, and operating margin during the most recent fiscal year.
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