Definition of stakeholder

The term "stakeholder" has its roots in the 17th century English word "stake," meaning "interest" or "share." Initially, a stakeholder referred to someone who had a financial interest or a stake in a business, such as a shareholder. Over time, the concept expanded to include individuals or groups who have a stake in an organization, project, or outcome beyond just financial interests. This could include employees, customers, suppliers, local communities, or even the environment. The modern usage of the term "stakeholder" emerged in the 1960s and 1970s within the fields of business, management, and social responsibility. It was popularized by management guru Robert Kaplan and economist Jeremy Siegel, who recognized the importance of considering multiple stakeholders in decision-making processes. Today, the term is widely used in various contexts, including corporate social responsibility, sustainability, and project management, to acknowledge the diverse interests and needs of individuals or groups impacted by an organization's activities.