An organization’s internal stakeholders consist of
Multiple Choice
competitors, the community, and suppliers.
employees, the board of directors, and owners.
customers, the community, and employees.
the board of directors, customers, and local government.
The correct answer and explanation is:
The correct answer is: employees, the board of directors, and owners.
Explanation:
Internal stakeholders are individuals or groups who are directly involved in the operations of an organization. They play a crucial role in the organization’s success and are typically involved in decision-making processes or affected by the outcomes of those decisions. The internal stakeholders are primarily those within the organization or have a direct relationship with it.
- Employees: Employees are perhaps the most essential internal stakeholders. They are directly involved in the day-to-day activities of the organization and contribute to achieving its goals and objectives. Employees include everyone from entry-level workers to upper management, all of whom are affected by the organization’s decisions, policies, and culture. Their work performance and engagement directly impact the overall success of the organization.
- Board of Directors: The board of directors is another key group of internal stakeholders. It consists of individuals elected by shareholders (in the case of a corporation) to represent their interests. The board provides oversight, guidance, and strategic direction for the organization. They are responsible for major decisions, such as approving budgets, setting company policies, and hiring the CEO or other executives. The board of directors has a critical role in the governance of the organization.
- Owners: Owners, or shareholders in the case of a publicly traded company, are internal stakeholders who hold ownership in the company. They invest capital and expect a return on their investment. Owners have the right to vote on major decisions (such as mergers, acquisitions, or changes in corporate structure) and often hold the ultimate power in determining the direction of the company. Their financial interest and involvement in the governance make them vital internal stakeholders.
In contrast, external stakeholders (such as competitors, suppliers, customers, the community, or local government) may influence or be affected by the company’s actions but do not participate directly in its internal operations.