Definition of External Stakeholders
External stakeholders are unlike the internal stakeholders, who work, taking part in the day to day activities. Internal stakeholders include management, employees, owners, etc. However, external stakeholders do not have to take part in the routine activities as work, of a firm but they are affected by the decisions and actions of a firm.
Government, creditors, customers, shareholders, vendors, and creditors are some of the important external stakeholders.
Example of a Few External Stakeholders:
External stakeholders include the customers, as they do not work with the company but they buy and consume/use a company’s products and services so a change in price, product/service would affect them.
Vendors. Vendors are the raw material suppliers of a company if a company makes a decision to relocate its plant the extra travelling may affect a vendor.
Shareholders. Shareholders are one of the most important stakeholders of a company as they are mostly affected by the profit or loss of the company but many other decisions may also affect shareholders.
Creditors. Creditors are the firms/individuals to whom the firm is liable to pay a debt for products or services bought.