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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