In the context of business, what does the term "stakeholder" refer to?

The term "stakeholder" encompasses a broader concept than just those with a financial interest in the company. It refers to any individual or entity that has a vested interest in, or is affected by, the operations and outcomes of a business. This includes not only shareholders but also employees, customers, suppliers, community members, and even government agencies. Stakeholders can experience changes in their circumstances resulting from the company's activities, making their interests and concerns crucial for businesses to consider when making decisions.

This understanding highlights the importance of stakeholder engagement in business strategy, as addressing the needs and expectations of diverse stakeholders is essential for sustainable success.