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The Importance Of Shareholders In Business

828 Words4 Pages

Shareholders are people or companies who are interested in making profits that were made in the past year in the business and how much dividends they will come out with at the end of that year, in other words, how much money they will make from the businesses proift. Shareholders have a lot of money invested into a business which means they have a lot of faith and believe the business will be successful! Having a lot of money invested into a business will automatically make them the legal co-owner of the firm depending on how much they invested! If it's over 50% they invested then they are officially a co-owner to the firm. This means the shareholder has a say in the business and it's decisions. If the shareholders in the business don't want …show more content…

With both having an equal say I think business' all around the world would run smoothly and much better rather then blocking out the stakeholders ideas and opinions. From what I have said above I think stakeholders are definitely just as important as shareholders. I think there wouldn't be much of a business if stakeholders didn't exist. In fairness Shareholders are the reason the business has the money to be set up in the first place but Stakeholders are the reason the business is up and running seven days a week. As I said. stakeholders are made up of employees, customers, banks, communities, producers and everyone else involved in a firm! Without them there wouldn't be a business. So why should the manager ignore their opinions about the business? All of them combined are the reason the business is still going and being successfully running as long as it is. I understand satisfying the Shareholders needs and wants are a top priority in the organization but the Stakeholders needs and wants must be recognized also. If the manager does not satisfy them you will see a huge decrease in customers and an unhappy employee group. This will leave the business to eventually shut down because having no customers or employees are the main factors that make up a successful business. Who would keep the organization in check on a daily basis? Who would purchase the products made from the company? Without the stakeholders the business could never survive. I think it is vital to have the Stakeholders recognized just as much as the Shareholders! Some might disagree with me but that is my opinion on why I think Stakeholders should most definitely not be ignored while the Shareholders needs are satisfied, Both the Shareholders and Stakeholders are equal in my eyes and deserve to be treated equally in

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