Every organization has internal and external stakeholders who hold an interest in the business. Internal stakeholders can be easily defined due to their financial concerns in the company. External stakeholders are not directly part of the operations or decision-making process of the company and neither do they have any kind of financial interest. They are the external individuals, groups, or entities that are affected by the outcomes of an organization’s decisions.
They hold their interest in the success, failure, or direction of the company. Examples of external stakeholders:
- Not-for-profit groups
- Government regulatory
- Trade unions
- Citizens’ action groups