1.4.1—Internal and external stakeholders

Stakeholders are people or groups affected by a business or able to affect it. Internal stakeholders work within or own the organisation; external stakeholders—such as customers, suppliers, government and communities—interact from outside.

Each group has interests that shape business choices: employees may value pay and security, owners returns, customers price and quality, and communities employment or environmental protection. Influence and impact vary by decision, so the same group is not always the most important stakeholder.

Name the stakeholder, state its interest and show the route from the business decision to the likely effect. Classify by relationship with the organisation, not by whether the group is supportive.

If a factory automates a production line, managers may expect lower unit cost, employees may fear job losses, customers may gain lower prices and the local community may lose spending. These are stakeholder effects of one decision, not just labels.

Stakeholder does not mean “anyone with an opinion”. There must be a plausible impact or influence link, and classification does not by itself decide whose interest should win.