A stakeholder is a person impacted by or with an interest in or concern about the activities of another person or entity.
The stakeholders of companies, corporations and other reporting entities are likely to be:
- The owners of its capital
- Other suppliers of capital to the reporting entity
- Trading partners of the reporting entity
- Employees of the reporting entity
- Regulators
- Tax authorities
- Civil society in all its forms including local authorities, journalists, academics, civil society groups and individuals.
In the case of most companies, corporations or reporting entities many stakeholders are likely to have more interest in the activities of a company because of its potential impact on their well-being than the owners of its capital.
Despite that, the International Financial Reporting Standards Foundation has ruled through its International Accounting Standards Board that its accounting standards need only meet the needs of shareholders and other owners or suppliers of capital to a company and that the needs of other stakeholders need not be considered in the course of preparing accounts of financial statements.
See also stakeholders of a tax system.
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