Stakeholders

Internal stakeholders are individuals or groups within a company or organization who have a direct interest in the actions and decisions of the organization. These stakeholders are typically associated with the organization in some way, such as through employment. Examples of internal stakeholders include employees, management, and the board of directors.

External stakeholders are individuals or groups outside of a company or organization who have an interest in or can be affected by the actions and decisions of the organization. These stakeholders may not have a direct connection to the organization, but their interests or concerns can still be affected by the organization’s actions. Examples of external stakeholders include the government and the community in which the business operates.

Connected stakeholders are individuals or groups that either invest in or have dealings with the firm. Examples of connected stakeholders include shareholders, customers, suppliers and finance providers.

Another method of categorizing stakeholders is based on the type of relationship they have with an organization.

Primary stakeholders are those that have a formal, contractual relationship with the organization, such as employees, directors and shareholders.

Secondary stakeholders, on the other hand, are those that have an interest in the organization but do not have a formal, contractual relationship with it. These stakeholders would include the general public and other parties that fall into the “external” category previously mentioned.

It is important for an organization to consider the needs and interests of stakeholders when making decisions and taking actions, as stakeholders can impact the success and sustainability of the organization.