Discuss the difference between shareholder and stakeholder theories of business, with reference to issues concerning the environment. (Philosophy/Business Question)

20 1

Get full Expert solution in seconds

$1.97 ONLY

EXPERT ANSWER

Ans- Shareholder and stakeholder both have interest in in the company , although they both are same to pronounce abut there is major difference in both ,

It is to be noted that shareholder are always stakeholder but stakeholder may not always shareholders, It is beacuse shareholders are those who own shares of the company as part of capital , but stakeholders are those who have any kind of interest in the company

​​​​​​Role of shareholder- Shareholder can be an individual, corporation , institution which own shares of company, there is always financial interest of shareholder in company and they always wants better earning for their shares, they are owners of the company and every major step taken by the company with consent of shareholder

Role of stakeholder – Stakeholder includes

I) Owners

II) Shareholders

III) Bond holders

IV) Employees

V) Investors and lenders

VI) Customers

It is clear that stakeholder includes all those who have any kind of interest in company , their interest not only limited to financial position of company but to overall growth so that every one who is affecting from business can grow, they are durectly affected by every performance of company ,

Enviorment being the most vital for ethical growth of any company , no company or business can sustain in long term if they are adverse to the enviorment ,

Theory of stakeholders is always in the favor of environment policy , at a point shareholder may not worried about environment issues as they have only financial interest but stakeholder who directly affect by every performance and to ethical growth environment issues must be taken as priority by stakeholders .