5 Questions
What is a consequence of an organisation's activities that can affect the local community?
The creation of employment opportunities
Which of the following is not a traditional stakeholder group?
The future
What is a limitation of considering stakeholder groups separately?
Each person may belong to multiple stakeholder groups
What is the distinction between internal and external stakeholders?
Internal stakeholders are within the organisation, while external stakeholders are not
What is a characteristic of voluntary stakeholders?
They can choose whether or not to be a stakeholder
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
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.
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