Crypto assets are one of the revolutionary technologies in finance in the last two decades. As a reminder, crypto assets operate on a decentralized technology called blockchain. A deep understanding of stakeholders has become important in today’s continuously developing crypto ecosystem. Stakeholders or parties interested in a project or platform will form relationships important for crypto’s development and sustainability.
So, to understand more about stakeholders, their types, functions, and roles in a company, the differences with shareholders, and their role for crypto investors, read the full review below!
What are Stakeholders?
Stakeholders refer to all entities, whether individuals, communities, or social groups, with a connection and interest in an organization, company, or certain issue.
In the Indonesian context, the meaning of stakeholder is a stakeholder or party who has related interests. According to Investopedia, stakeholders are individuals or groups who are interested in a company and have the potential to influence or be affected by that business. Quoting Kompas.com, R. Edward Freeman defines stakeholders as groups of people or individuals who influence each other and are influenced by the achievement of certain goals of an organization.
Meanwhile, in the business world, the presence of stakeholders is important because they can contribute to achieving company goals. However, it is important to remember that not all stakeholders always positively impact the company. Although often associated with the business world, stakeholders can be found in various fields. Stakeholders play a passive role and an active role in carrying out organizational goals.
Furthermore, stakeholders can also be defined as parties who can impact or receive impacts from company policies, both in positive and negative forms. Examples of stakeholders include shareholders, employees, staff, employees, resources, distributors, and consumers.
Types of Stakeholders
After knowing the definition, now is the time to determine the types of stakeholders. Please note that stakeholders are divided into three (3) types, namely:
1. Main Stakeholders
These stakeholders have a significant attachment or strong relationship to policy formulation, project implementation, and program management. Examples are the general public, community leaders, and public managers.
2. Supporting Stakeholders
These are also secondary stakeholders who are not directly involved in a program, policy, or project. Examples of secondary stakeholders include government institutions, Non-Governmental Organizations (NGOs), universities, and business people.
3. Key Stakeholders
Key stakeholders refer to the group of executives who have formal decision-making authority. For example, in a government project at the district level, key stakeholders include the district government, district DPRD, and agencies that are directly responsible for implementing the project.
Functions and Roles of Stakeholders in the Company
So, you already know what the types of stakeholders are. Next, you also need to know the stakeholders’ functions and roles in the company. Here are some of them:
1. Make a decision
In general, stakeholders often hold meetings involving company executives. These meetings include directors and other individuals who play important roles in the organization, such as shareholders with large holdings. These parties can make decisions or convey relevant ideas to the company. Furthermore, this stakeholder group can appoint or dismiss the CEO if necessary.
2. Direct management
Several stakeholders are directly involved in company management. They can fill positions in certain departments, such as HRD, R&D, and others, to directly manage business operations and ensure their success. This practice is often found in private businesses and publicly traded companies, where large investors can play an active role in managerial functions.
3. Financial support
As previously explained, stakeholders are included in the investor category for a company. Therefore, they can adjust their investments depending on the company’s financial condition. The decision to increase or decrease their investment can affect the financial direction of the business. Thus, building positive relationships with stakeholders is very important for companies.
4. Corporate social responsibility
Companies are required to maintain a balance between business interests and stakeholder needs. For this reason, implementing corporate social responsibility (CSR) is a must. Social responsibility can be applied to employees, consumers, suppliers, shareholders, the environment, or certain communities. Stakeholder decisions are often influenced by the effectiveness of the CSR strategy implemented by a company.
Examples of Stakeholders
In general, two (2) examples of stakeholders need to be known. Both are internal and external stakeholders. The following are examples of each of these stakeholders, including:
1. Internal Stakeholder
- Company owner (owner)
- Shareholder
- Employee
2. External Stakeholder
- Vendor or supplier customers
- Government
- Public
- Consumer
- Distributor
- Financial institutions
- Competitors/competitors
What Are the Rights of Stakeholders?
Regarding stakeholder rights, in general, there are two types of rights: internal and external. The following are details of each stakeholder’s rights that are important to understand, including:
1. Internal Stakeholder Rights
- Salary
- Allowance
- Adequate facilities are in line with their contribution to the company’s progress.
2. External Stakeholder Rights
- Appropriate payment
- Refund
- Return (profit or result)
Difference between Stakeholders and Shareholders
Apart from stakeholder, there is also another term that is almost similar: shareholder. The difference between shareholders and stakeholders can be seen from both definitions. From a conceptual perspective, stakeholders have a very different definition and scope from shareholders.
According to the Corporate Finance Institute, a shareholder is an individual/entity who holds at least one share right in a company. Ownership rights to shares or equity are legally recognized and can be owned by certain individuals, companies, or organizations.
On the other hand, there are also differences in contributions and rights between stakeholders and shareholders. In general, shareholder contributions can be seen from the number of shares purchased or acquired. Based on this contribution, they are entitled to returns such as dividends, profits from increases in share prices, and the value of assets upon liquidation.
Furthermore, stakeholders provide more diverse and complex contributions and involve production factors, labor, and funding. Each type of contribution also produces varying returns.
Stakeholder Roles for Crypto Investors
In the dynamic crypto ecosystem, the role of stakeholders is critical to investor success and growth. Understanding and good relationship management with various parties involved, including stakeholders and investors, is important to achieve sustainability and long-term success in crypto investment.
Understanding the role of stakeholders, such as the development team, user community, regulators, exchanges, other investors, media, and ecosystem developers, allows crypto investors to better respond to market changes. Effective collaboration with stakeholders can provide additional knowledge, accelerate adoption, and increase trust in the crypto ecosystem. Also, managing relationships with other investors is important to form positive market sentiment.
Good engagement with media and crypto influencers can support marketing, while cooperation with regulators and governments can help create a stable legal environment. By understanding and managing relationships with various stakeholders, crypto investors will be able to mitigate risk, support the growth of their portfolio, and contribute to the positive development of the crypto ecosystem. It is important to prioritize open communication and mutually beneficial collaboration to achieve common goals.
Conclusion
In conclusion, in the crypto ecosystem, awareness of the roles and interests of various stakeholders is the main key to supporting sustainable development. A deep understanding of the contributions and expectations of stakeholders, from the development team user community to regulators, will help to form a strong foundation for the success of crypto projects and investments.
Cryptocurrency investors can build mutually beneficial collaborations with related parties with effective relationship management. This will not only help in mitigating risks but will also create an environment where innovation and growth can flourish.
Invest in Crypto on INDODAX
So, now you understand what stakeholders are, their types, functions, and roles in a company, examples, their rights, differences with shareholders, and their role for crypto investors.
Next, if you are interested in investing in crypto, it would be a good idea to check the crypto market on INDODAX market first. After reviewing the price, you can buy crypto assets on a trusted crypto exchange, INDODAX.
Please note again that INDODAX is Indonesia’s leading and pioneering platform in terms of trading crypto assets. INDODAX is a crypto asset buying and selling platform that provides trusted services to investors and easy and comfortable access to the crypto asset market for guaranteed secure transactions.
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