Final answer:
Stakeholders are individuals or entities with an interest in a business, which can include a broad range of parties such as employees, customers, suppliers, and government regulators, extending beyond just the shareholders or owners.
Step-by-step explanation:
The term stakeholders refers to individuals or organizations that have an interest or stake in a business. This includes not only those with financial investments like shareholders or owners but also extends to a wide range of people who are affected by the company's operations, such as employees, customers, suppliers, and government regulators. For instance, in the context of a design project, stakeholders could include the design team, the company that employs them, the users and customers of the final product, as well as entities like government agencies that regulate the product's use.
Milton Friedman's view emphasized that a company is owned by its shareholders, who are entitled to the maximum return possible on their investment. However, the stakeholder concept broadens this perspective by considering the interests and impacts on a diverse group, extending beyond those who hold shares. When businesses operate, they have various obligations and impacts on these stakeholders, which can determine many decisions made by the business.