Stakeholders are any individuals or entities that have a vested interest in a business’ operations and performance. They can affect or be affected by the activities and decisions of the company, even if they are not directly involved in its operations. Stakeholders can include a wide range of entities, from shareholders and employees to customers and suppliers, communities, governments, and trade associations.

The concept of stakeholders is a relatively modern invention in the business context, though its origins lie in philosophy and sociology. It is generally accepted that a company’s stakeholder orientation and its efforts to recognize, identify, and manage its various stakeholders are an integral part of its overall business strategy.

In terms of a business, stakeholders possess a set of interests and claims on an organization’s characters and strategies and may help determine the success or failure of the organization. For example, a company’s shareholders are not the only stakeholders that need to be considered. Employees, customers, and suppliers are just as important – if not more so – and can have a more immediate impact on the business.

Furthermore, managers must also ensure that their decisions are in line with the interests of those in the broader environment, such as the general public and governmental or social entities. Companies are often held to a higher degree of corporate responsibility, and they must recognize the effects of their actions on all of their stakeholders – not just shareholders – in order to remain competitive, ethical, and in compliance with the law.

At the end of the day, stakeholders must all be taken into account in terms of creating and implementing a successful business plan. Managers must actively solicit stakeholder input, have an understanding of the stakeholder’s needs, and develop a plan of action that strikes an equitable balance between stakeholders and the company’s overall objectives. This can often be a delicate balancing act that requires empathy, respect, and a heightened sense of responsibility.