2. What Is a Stakeholder?
- A stakeholder is a group or
individual that is connected in any
way to a business and that will be
affected by, or be able to affect, the
business and its operations.
- The connection can be a strong and
close relationship like that of an
owner, supplier, or customer
3. Types of
Stakeholders
- Primary stakeholders: People who are directly affected by a
business and its activities or decisions. Shareholders fall into this
category, as their profits depend on how the business chooses to
operate.
- Secondary stakeholders: People who are indirectly affected by a
business and its activities or decisions. They do not directly engage
with the business, but they may engage with or be connected to
primary stakeholders. Members of the local community in which a
business operates who do not actually shop at the business fall into
this category.
4. Internal stakeholders are people whose interest in a company
comes through a direct relationship, such as employment,
ownership, or investment.External stakeholders are those who do
not directly work with a company but are affected somehow by the
actions and outcomes of the business.
5. What are
INTERNAL
Stakeholders
In business, the term “internal
stakeholders” refers to a group of people
who have an interest in the success or
failure of an organization. This can include
employees, managers, executives,
shareholders, and others. An
organization’s internal stakeholders can
impact its ability to achieve its goals.
7. What are the
EXTERNAL
Stakeholders
In business, the term “internal
stakeholders” refers to a group of people
who have an interest in the success or
failure of an organization. This can include
employees, managers, executives,
shareholders, and others. An
organization’s internal stakeholders can
impact its ability to achieve its goals.
8. What are external
stakeholders?External stakeholders
are people or factors that operate
outside of the internal affairs of the
business but still experience risk
based on the business's performance.
For example, customers can be
external stakeholders for any
business. Because the
customer experiences risk based on
the performance of the business, they
fall under the category of external
stakeholder.
- These are some things an external
stakeholder may do:
- Encompass many people and factors that
affect how a business operates
- Gain something from the company's
products or services
- Help hold businesses accountable in
their industries
11. DIFFERENCES BETWEEN INTERNAL &
EXTERNAL STAKEHOLDERS
BASIS FOR COMPARISON INTERNAL STAKEHOLDERS EXTERNAL STAKEHOLDERS
Meaning The individual and parties that are
the part of the organization is known
as internal stakeholders
The parties or groups that are not a
part of the organization ,but gets
affected by its activities is known as
External Stakeholders
Nature of Impact Direct Indirect
Who are They? They serve the organization They
Employed by the entity yes No
Responsibility of the company
towards them
Primary Secondary
Includes Employees,Owners,Board of
Directors,Managers,Investors,etc
Suppliers,customers,creditors,client
s,Intermediaries,competitors,society
12. BENEFITS OF
STAKEHOLDERS
PARTICIPATION
Ensures that the
project plans are a
reflection of the real
needs and priorities.
Develops an
environment of trusts
by allowing the voices
of the stakeholders be
heard and their issues
be known
Makes the project
accountable to the
stakeholders
Enables the voices of
the stakeholders to be
heard and by doing
that the level or trust
in the relationships
increases
Promotes
transparency in the
actions of the project
and ensures that the
project is held
accountable for its
actions
Increases ownership
by stakeholders who
feel yhe project is
taking in account their
views and motivates
them to sponsor the
projects which
ultimately leads to
sustainability
It is a key strategy to
win support to the
project,to gain
commitment to the
project,and ultimately
to increase the
chances for
sustainability after the
project has been
completed.
13. TIPS YOU CAN USE BOTH TO BUILD &MAINTAIN
HEALTHY STAKEHOLDER RELATIONSHIPS
Address Address issues as and when they arise
Have Have an open mind
Keep Keep your word
Schedule Schedule periodic touch-base sessions
Involve Involve your stakeholders
Build Actively build strong relationships from the start
14. CONCLUSION
- INTERNAL stakeholders are a vital part of any organization.They can provide valuable
insights,feedback,and support that can help an organization to grow and thrive.If you
want to succeed in business,it is essential to build a strong relationship with your
internal stakeholders.By definition,they are people who have a vested interest in your
success or failure.When you treat them well and involve them in decision-making,you
are more likely to achieve your goals.In a similar way,external stakeholders are also
very important.Customers are very important external stakeholders as they are the
ones who will buy and use the product/service.Similarly,creditors are important as they
offer companies the financies they need to carry out their operations.In addition,a
company is supposed to adhere the rules and laws put forward by the government and
to pay taxes.Therefore,it is evident that like internal stakeholders,external stakeholders
are also very significant