Page 2: What is a stakeholder?
Every business has people or groups of people who have an interest in what it does. These are called 'stakeholders'. It matters to them what happens with a business and what a business does. The reasons for diverse 'stakes' in certain businesses differ - we shall see this in the case of Michelin.
Stakeholders should not be confused with shareholders. A shareholder is a part owner of a business, as he or she has bought a part of its value. Shareholders can have a say in what the business does. They share in risks as well as successes.
Shareholders are also stakeholders in Michelin, as they are in all businesses. However, not all stakeholders are shareholders. Considering the various stakeholders in Michelin, there is a range of different 'stakes' held by people and groups:
- customers (whether another business or an individual)
- Michelin employees
- governments local to Michelin sites
- financial institutions
- communities where Michelin operates
- various pressure groups (eg Friends of the Earth).
We will now look at some of these and see how this global business works to build stakeholder values.