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In a corporation, as defined in its first usage in a 1963 internal memorandum at the Stanford Research Institute, a stakeholder is a member of the “groups without whose support the organization would cease to exist”. Any action taken by any organization or any group might affect those people who are linked with them in the private sector.
For examples these are parents, children, customers, owners, employees, associates, partners, contractors, and suppliers, people that are related or located nearby. Now as the concept takes an anthropocentric perspective, while some groups like the general public may be recognized as stakeholders others remain excluded. The definition of corporate responsibilities through a classification of stakeholders to consider has been criticised as creating a false dichotomy between the “shareholder model” and the “stakeholders model” or a false analogy of the obligations towards shareholders and other interested parties. In the last decades of the 20th century, the word “stakeholder” became more commonly used to mean a person or organization that has a legitimate interest in a project or entity.