What is a stakeholder and why are they so important? (2024)

At ASC we like our stakeholders, and we like talking about them. In fact, a quick search of the ASC website for the word ‘stakeholder’ returns over 1,500 results.

We’re not the only ones: a search of Google’s Ngram Viewer, which tracks the usage of words and phrases in books over time, shows a very flat, and low, line for nearly two centuries, before an uptick in the 1980s and an almost vertical rise from the mid-90s. Stakeholders are important, and people like to talk about them.

When you use a word that often, it’s easy to forget that maybe not everyone else knows what you’re referring to when you use it.

So, what do we mean when we say we want to hear from our stakeholders, or that we’re making it easier for stakeholders to have input on our decisions? Just who are these stakeholders we can’t stop talking about?

The short answer is: you are. If you’re on our website and reading this you have an interest either ASC, or responsibly farmed seafood, or just environmental and social issues more generally. That makes you a stakeholder in our work. And it means when we ask for feedback from our stakeholders, we’d love to hear from you. Now that we’ve made you feel special, feel free to read on for the longer answer…

Skip this bit if you don’t like history…

Despite its relatively recent growth in popularity, the word ‘stakeholder’ has been around for a long time, and according to the Oxford Dictionary has its roots in gambling. A ‘stake’ meant, as it does now, an amount of money or something else of value that is placed in a bet. The word stakeholder had emerged by the 1700s as a way of describing a person who takes those bets – they are literally the stake holder.

But we can assure you that when we’re talking about stakeholders we aren’t talking about someone we have placed a wager with. Another, less literal, meaning of the word emerged that described a person who has a concern, or interest, in a certain organisation, business, system, or outcome.

That is a lot closer to the meaning we have in mind when we talk about our stakeholders. So by this definition it would be anyone who has an interest in the success of the ASC programme – anyone who wants us to succeed in our mission to drive up standards in aquaculture. As you can imagine, that’s a pretty wide category.

Why stop there?

In fact, we could go even wider. Because ultimately our mission is to work towards a world where everyone has access to the food they need, without placing an intolerable strain on the environment, and without exploiting, mistreating, or ignoring workers and communities. We would argue that anyone who has a stake in that kind of future, also has a stake in the success of the ASC programme.

Stakeholder is sometimes confused with shareholder: someone who has shares in a company and wants to see it make a profit. A shareholder can be a stakeholder, but the two words aren’t the same, and it’s certainly not what we mean when we say stakeholder (we’re an impact organisation, so we don’t have shareholders).

Working together

So that’s who our stakeholders are. Why do we talk about them so much? The ASC programme was founded by mass collaboration. Not just between the two NGOs who founded ASC but by the many and diverse experts who took part in the aquaculture dialogues.

These dialogues, over the course of many years, used this diverse experience to create the first ASC standards for responsible aquaculture. The aquaculture industry didn’t create these standards, nor did academics, or NGOs. At least, not on their own. Everyone had a say, and the result was a compromise that reflected these different experiences and points of view.

ASC needs YOU!

That’s something we’ve carried forward in all of our work since. We don’t make changes or additions to the programme without consulting. And we don’t just consult the experts (though of course they are important), we consult anyone who might be affected by the changes.

Some of these stakeholders might be particularly closely affected. For example, if we are changing the requirements in our Seabass Standard, it’s especially important that seabass farmers know about it, as well as their auditors. Or if a farm is being certified near a community, it’s important that community has their say. That’s why sometimes we will explicitly list some of the stakeholder groups we want to hear from.

But that doesn’t mean we don’t want to hear from anyone else. Just like the best acceptance speeches at The Oscars don’t have time to thank every single person, you might find it boring if we listed every single group or person we want to hear from, which is why the word ‘stakeholder’ is a useful one.

Because if you are passionate about environmental and social responsibility, the work of the ASC will affect you; you may feel invested in the future decisions and impacts of the ASC. Whichever category you fall into, you are a stakeholder.

So please, next time we ask to hear from our stakeholders, don’t be afraid to get in touch!

What is a stakeholder and why are they so important? (2024)

FAQs

What is a stakeholder and why are they so important? ›

Stakeholders are people who have an interest in and are impacted, whether positively or negatively, by the current project. An individual or an organisation can represent stakeholders. They exert significant influence on the project, and no project can succeed without their presence and input.

What are stakeholders and why are they important? ›

Stakeholders (such as volunteers, donors, and vendors) influence your ability to fulfill your mission; they are also the people (such as beneficiaries, partner organizations, and the community) who experience the consequences of your choices and actions.

What is the main role of a stakeholder? ›

The primary role of stakeholders is to define business goals and develop plans that help them achieve those goals. In addition, these stakeholders periodically review business operations and strategies to find more efficient methods. They also access employee performance to ensure they align with growth objectives.

Why are stakeholders important and influence? ›

Importance: The priority given to satisfying the needs and interests of each stakeholder. Influence: The power a stakeholder has to facilitate or impede the achievement of an activity's objective.

What best defines a stakeholder? ›

The international standard providing guidance on social responsibility, called ISO 26000, defines a stakeholder as an "individual or group that has an interest in any decision or activity of an organization."

What is the benefit of stakeholders? ›

What are the benefits of engaging stakeholders? Communicating directly with a stakeholder allows you to learn their perspective, obtain valuable feedback to improve your products and services and also new insights to help you gain a competitive advantage. An informed decision is the best decision.

What is the impact of stakeholders? ›

What is Stakeholder Impact? Stakeholder impact refers to the effects an organization's actions, decisions, or policies have on its stakeholders. It's a way of evaluating the impact of an organization's activities on the people, groups, and organizations that are affected by its operations.

What is an example of a stakeholder? ›

Common examples of stakeholders include employees, customers, shareholders, suppliers, communities, and governments. Different stakeholders have different interests, and companies often face trade-offs in trying to please all of them.

How do stakeholders influence a business? ›

All stakeholder groups have an impact on a business, but some will have more impact than others, giving them more power and influence on the activities of the business. Common areas that stakeholders may influence in a business include decision-making, aims and objectives, operational issues, sales, costs and profits.

Why should a business be concerned with stakeholders? ›

Building relationships with stakeholders and engaging with them can go a long way in reducing risk for your business. Not only due to the potential knowledge and resources you can tap into for your business, but because some stakeholders themselves may present additional risk that you need to manage.

Who is the most powerful stakeholder? ›

Customers

We all know that customers come in many shapes and sizes, and it's no different when they're project stakeholders. Customers are arguably the most important project stakeholder of all.

Are stakeholders good or bad? ›

Good stakeholders are genuine partners with a common goal. Good stakeholders are teammates on a larger team. Bad stakeholders want everything to flow through them, and want an asynchronous power relationship. Good stakeholders know that they are stakeholders to others.

Who is the most powerful stakeholder and why? ›

One of the most important stakeholders of a business is the customer. Customers buy the products the company provides and help make the company successful. They also contribute to the success of the business in other ways. For example, they can provide feedback that can improve a company's product or service.

What are the three roles of stakeholders? ›

A person or group who provides resources and support for the project and is accountable for enabling success. Help eliminate barriers. Approves final plan.

Who is the most important stakeholder in a project and why? ›

Customers are arguably the most important project stakeholder of all. And why? Because they're the reason your project exists in the first place. Without them, you'd have no reason to provide your product or service.

Why is it important for all stakeholders to work together? ›

Stakeholder collaboration can allow you to work more efficiently by tapping into skills, knowledge, resources, and capabilities that speed up your processes. Plus, it can help you identify and remove potential roadblocks that would have otherwise held up your project.

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