a) What is the difference between primary and secondary stakeholders?

b.Do you consider shareholders to be a primary stakeholder for listed companies? Explain the reasons for your answer.

a. Primary Stakeholders are entities or people that participate in direct economic transactions within an organisation whereas secondary stakeholders are entities or people that do not participate in direct economic transactions within an organisation. Primary Stakeholders without which an organisation cannot survive in the foreseeable future whereas secondary Stakeholders there is no finance impact on them due to decisions made by the business. Primary Stakeholders are easily identifiable in the organisation whereas secondary stakeholders are not easily identifiable.

b. Government, Trade Unions are examples of Secondary Stakeholders whereas employees, Directors, shareholders are some of the examples of Primary Stakeholders as they can directly impact the commercial transactions of an organisation.

Investors and shareholders are primary Stakeholders as all they have a direct financial relationship with an organisation. Shareholders are primary stakeholders because they can directly influence the decision making process of an organisation and they are very important for the survival of an organisation and without them an organisation cannot survive and are easily identifiable because of their financial stake in the organisation.

Shareholders are Primary Stakeholders for listed companies.