Internal Stakeholders: Employees and Management
Because employees and management are so intimately connected with the company, their objectives are likely to have a strong influence on how it is run. They are interested in the following issues:
(a) The organization’s continuation and growth. Management and employees have a special interest in the organization’s continued existence.
(b) Managers and employees have individual interests and goals which can be harnessed to the goals of the organization.
Connected stakeholders Increase in shareholder wealth, measured by profitability, P/E ratios, market capitalization, dividends and yield.
External Stakeholders
Connected stakeholders and external stakeholders are both outside the organization. Their difference lies in the degree of connectedness.
Connected stakeholders supply resources to the organization such as capital or sales revenue.
External stakeholders do not have this direct connection but rather influence the context in which the organization operates.
External stakeholder groups – the government, local authorities, pressure groups, the community at large, professional bodies – are likely to have quite diverse objectives.
