What is the definition of external stakeholders?

The definition of external stakeholders refers to individuals or groups who do not own shares in, or are employed by, the business but still have an interest in its operations and outcomes. This includes customers, suppliers, community members, governments, and other entities that are affected by the business’s activities.

Understanding who external stakeholders are is crucial because they can influence business decisions and affect its reputation and success. By engaging with these stakeholders, businesses can identify their needs and expectations, which can help guide strategic planning and operations.

In contrast, the other choices focus on internal stakeholders or those more directly tied to the company’s operations, thus lacking the broader context of external stakeholders who play a vital role from outside the organization.