Business Jargon 101 ~ 8/19

This will be the first of many looks at common business words and their use.

Stockholders/Shareholders: Investors who have purchased a stake in the company. Typically a major driver in company decision making via their power to elect directors to the Board of Directors.

Stakeholders: Includes Shareholders, Employees, customers, suppliers, and partners. This in effect is the entire ecosystem for a company. Often subgroups within the ecosystem will have opposing interests. When conflict arises typically Shareholders will have the upper hand due to fiduciary responsibilities.

Fiduciary duty: Is a legal or ethical relationship in which there is an obligation from one party to another to manage on behalf of and serving the best interests of another party. In this case the shareholders have an investment and if the company doesn’t manage to account for that interest they can be legally liable for it.