External Stakeholders

What is External Stakeholders?

Every company has both external and internal stakeholders. The internal stakeholders can be easily defined because they have a financial interest in the company. External stakeholders cannot be easily defined as they are not involved in the operations and decisions of the company. While the external stakeholders have no interest in the financial stake of the company, they have an interest in the direction, success, and failure of the company. External stakeholders are important for the overall success of the business growing in any community.

The role of an external stakeholder starts with voicing opinions on the direction an organization is taking. They will feel that a company is doing something positive or negative concerning their personal issues. This opinion serves as an advisory role for the companies. The external stakeholders cannot control whether the company takes their advice or not.

Well that said, when an external stakeholder clashes with the company, it could create a lot of issues.

Examples of external stakeholders:

1. Vendors
2. Consultants
3. Not-for-profit groups
4. Government regulatory
5. Celebrities
6. Trade unions
7. Associations
8. Citizens’ action groups

Also, See: Stakeholder