Learning objectives:
Internal stakeholders usually refer to an individual or group that affects or is affected by an organisation and is directly involved inside the organisation. For example: managers, employees and (usually) shareholders.
Their job: Run the organisation, set aims and objectives, ensure aims and objectives are met.
Their job: Work for the company.
Their job: Really just to own and continue owning their company. They have return on investment expectations, hence, they are only concerned of their business’ profitability in the form of dividends or any increase in the value of their ownership interest. Not involved in daily runnings of a business but they are part of the Board of Directors that appoints a CEO that runs the business according to their interest.
External stakeholder is an individual or group that affects, or is affected by, an organisation, but who is not directly involved inside the organisation.
Their role: Purchase products of the organisation. Driving force for businesses to change its practices in order to be more ethical and sustainable.
Their role: Sell goods and services to another organisation, likes to maintain a stable relationship with companies they supply, want paid prices to be both fair and reasonable for the inputs.
Their role: Regulate organisation in order to protect the public interest. Enforce laws and policies where necessary. Usually rely on tax and employment as revenue. Sometimes, they also work to align interests of different stakeholders.