What does the term 'stakeholder' imply?

The term 'stakeholder' refers to any individual or group that has an interest in, or is affected by, the decisions and outcomes of a business. Stakeholders can include a variety of parties, such as employees, customers, suppliers, investors, and the community at large. Their interests may align with the business’s success, as they may benefit or be detrimentally affected by its operations and performance.

This understanding emphasizes the importance of considering diverse perspectives in business decision-making, as stakeholders often have different needs and expectations. For example, while shareholders might focus on profitability, employees may be concerned with job security and working conditions. Recognizing stakeholder interests can lead to more sustainable and responsible business practices.

The other choices focus on narrower definitions or roles that do not encapsulate the broad range of interests involved. A stakeholder is not just someone who profits from a company or merely a competitor or a regulator; rather, it encompasses anyone who has a vested interest in the business's outcomes, making option B the most fitting definition.