A stakeholder is someone who has an interest in a business.
The government is interested in businesses as they set out the regulations and need the businesses to do well to kepp the economy healthy.
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The stakeholder model takes the approach that in order to be effective, the organization needs to take all the stakeholders of a company into account. The approach to this can most effectively be implemented using the stakeholder focused performance management approach (SFPM). SFPM ensures that all stakeholder expectations and contributions are taken into account and measured in an effective framework using a modified balanced scorecard.
Shareholder and stakeholder in a company are the investors and company assets holder respectively. So the wealth maximization in both cases is nothing but increase in the share value for shareholder and company profitability for stakeholder.
The need of stakeholders are to now the business growth is profitable, customers are satisfied in order for him to receive his dividend.