In what ways does the public sector differ from the private sector in regard to stakeholders?

The public sector and the private sector differ in how they view stakeholders and their role in decision making. In the private sector, stakeholders are typically investors or shareholders of a company who have a vested interest in supporting decisions that will generate financial returns for them. Therefore, their primary focus is on maximizing profits rather than considering wider social issues such as public welfare or environmental concerns.

In contrast, the public sector takes into account all stakeholders when making decisions which includes citizens, government departments/ agencies , charitable institutions and other organizations whose interests may be impacted by any given action . This holistic approach requires government officials to draw from different sources of information before implementing any policy aimed at bettering society whether it be tackling poverty addressing mental healthcare needs etc.. Consequently broader societal objectives become central to governmental operations whereas profit maximization alone would not be sufficient enough under this model as there so many various stakeholder considerations that need taken into account first before moving forward with an official plan taking effect.