What does stakeholder mean?
A stakeholder is a person or organization that has an interest in a particular project, decision, business, or other undertaking. The term is broader than shareholder: shareholders own shares in a company, whereas stakeholders may include employees, customers, suppliers, regulators, local communities, and anyone else affected by or able to influence an outcome. “Key stakeholder” is a common way of identifying a participant whose support or opposition is especially important. In everyday discussion, the word can sound formal or managerial, but it remains common in business, government, law, and public-policy contexts in both British and American English. Its strength is that it emphasizes relationship and interest rather than ownership. A person may therefore be a major stakeholder without owning any part of a company, simply because the enterprise's decisions materially affect them or because they possess relevant knowledge, authority, or resources.
nounA person or organization that has an interest in, or may be affected by, a project, organization, decision, or enterprise.
- A person or organization with an interest in, or affected by, a project, organization, decision, or enterprise.
- A person who holds money or property at stake in a wager or undertaking.
"The council consulted local residents and other stakeholders before approving the development."
"Employees, customers, and suppliers are among the principal stakeholders in the company's plans."
"The two parties agreed that each stakeholder would contribute a portion of the cost."
The regular plural is stakeholders; the possessive singular is stakeholder's.
"The project brought together stakeholders from business, government, and the community."
A stakeholder need not own a single share: having a genuine interest in the outcome is enough.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Where does stakeholder come from?
Stakeholder is an English compound formed from stake and holder. In its older sense, a stake was money or something of value placed at risk, while a holder was someone who possessed or kept it. The word later acquired its modern figurative sense of someone who has an interest in an undertaking, whether or not they hold financial shares.
Related word forms
How stakeholder is actually used
The word is especially common in business, government, public policy, and organizational contexts. It is broader and more formal than terms such as investor and does not imply that the person owns company shares.
Easily confused with stakeholder
A shareholder specifically owns shares in a company, whereas a stakeholder is anyone with an interest in or affected by a company, decision, or project.