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Questions and Answers
What is a consequence of an organisation's activities that can affect the local community?
What is a consequence of an organisation's activities that can affect the local community?
Which of the following is not a traditional stakeholder group?
Which of the following is not a traditional stakeholder group?
What is a limitation of considering stakeholder groups separately?
What is a limitation of considering stakeholder groups separately?
What is the distinction between internal and external stakeholders?
What is the distinction between internal and external stakeholders?
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What is a characteristic of voluntary stakeholders?
What is a characteristic of voluntary stakeholders?
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Study Notes
Stakeholders
- Multiple definitions of stakeholders exist, including:
- Those groups without whose support the organization would cease to exist
- Any group or individual who can affect or is affected by the achievement of the organization's objectives
Common Stakeholder Groups
- Managers
- Employees
- Customers
- Investors
- Shareholders
- Suppliers
- Government
- Society at large
- Local community
Extended Stakeholder Groups
- The environment, which can be affected by organizational activities, such as:
- Utilization of natural resources
- Effects of competition
- Transformation of the landscape
- Distribution of wealth
- Pollution
- The future, as an organization's actions have a big effect on future possibilities
Multiple Stakeholding
- Each person may belong to multiple stakeholder groups simultaneously, such as:
- Customer, employee, local community member, and shareholder
- This complexity makes it unhelpful to consider each stakeholder group in isolation
Classification of Stakeholders
- Two main ways to classify stakeholders:
- Internal vs external stakeholders
- Internal stakeholders: employees, managers
- External stakeholders: suppliers, customers, etc.
- Voluntary vs involuntary stakeholders
- Voluntary stakeholders: choose to be a stakeholder
- Involuntary stakeholders: cannot choose (e.g. local community affected by pollution)
- Internal vs external stakeholders
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Description
Identify the different groups or individuals who have a vested interest in an organization's success. Take this quiz to learn more about stakeholders and their roles.