Final answer:
A stakeholder is any individual or group with an interest in a company's activities. Stakeholders extend beyond shareholders to include employees, customers, and other entities affected by the company.
Step-by-step explanation:
A stakeholder is an individual or group that has an interest or concern in an organization's activities and outcomes. They can directly or indirectly be affected by the organization's actions, objectives, and policies. Not just limited to shareholders who own a part of the company and expect financial returns, stakeholders also encompass a wide range of entities such as employees, customers, suppliers, creditors, the local community, and even government agencies.
For instance, in a design project, stakeholders may include the design team, users and customers of the final product, the company employing the design team, and any other entities that may be impacted by the design, such as regulatory bodies or partner organizations. Hence, stakeholders play a critical role throughout the lifecycle of a project or the operations of a company, influencing the outcomes and potentially affecting the success of the business endeavors.
The concept of stakeholder theory suggests that companies should consider the interests of all stakeholders in their decision-making processes, recognizing that a successful business is interdependent with the well-being and support of its wider stakeholder community.