department in new markets. This ties right in with talent and capability. The decision of prioritizing
globalization, talent, and capability will require diverse skills in new employees so they are able to
handle complex financial situations. This decision not only creates a change in new and current
employees but the CFO as well. The company must allocate the proper resources to train current
employees and the CFO on how other markets handle financial operations in order to boost
productivity. These three fundamental decisions would impact the company's balance sheet in a
positive way as it would boost company morale, and increase the chance of financial functionality.
Knowing the difference between a stakeholder and a stockholder is extremely important, especially
when examining how each is responsible for the success of an organization. Stakeholders are
individuals directly affected by an organization's actions, decisions, and outcomes. Stakeholders may
not only be involved financially but may have other interests (social, ethical, etc.) concerning the
organization itself. Stockholders are a bit different. Stockholders are a more specific type of
stakeholder, as they are affected by one specific part of an organization. Stockholders are individuals
who hold shares of the company's stock. Because they hold shares, stockholders often have a
financial interest in an organization; mainly prioritizing their own financial return (DesJardine et al.,
2022). There are various differences between a stakeholder and a stockholder, mainly in regard to
financial interest. (1) Stockholders have more financial interest in a company due to their own
finances being involved in a company's success, whereas stakeholders hold a broader range of
concerns over a company outside of the finance aspect, such as social or ethical aspects. (2) Another
important difference between stakeholders and stockholders is the level of influence they have over
a company. Stockholders carry a greater influence over an organization due to their ownership stake.
Stakeholders, specifically those without significant financial stakes, have less direct influence.
Regardless of the difference, both stakeholders and stockholders play crucial roles in the success of
an organization. The concern stakeholders have over social and environmental impact can lead to
bettering the company's reputation. Stakeholders having an overall interest in all the other ongoings
of a company outside of financial interest benefit an organization as they are focused on the factors
of an organization that can increase employee and customer loyalty, as well as increase employee
retention. On the other hand, stockholders' interest and dedication to a company financially is equal
to making an organization succeed. The investments stockholders make provide companies with
capital that they can use to fund necessary initiatives. In essence, while both stakeholders and
stockholders prioritize different aspects of an organization, they are both responsible for bettering
and increasing the success of an organization due to their main goal being the betterment of their
organization of interest.
DesJardine, M. R., Zhang, M., & Shi, W. (2022). How shareholders impact stakeholder interests: A
review and map for future research.
Journal of Management
Ilie, L. (2015). Challenges for financial managers in changing economic environment. Procedia