Who qualifies as an internal stakeholder?

Internal stakeholders are individuals or groups that are directly involved in the operations of a business and have a stake in its success. Employees and investors are prime examples of internal stakeholders because they have a direct interest in the company’s performance.

Employees contribute to the organization’s productivity and are affected by its success and operational decisions, making them integral to the business's performance. Their roles can range from daily operational tasks to strategic contributions at various levels, which directly influences the company's outcomes.

Investors, particularly those who own shares in the company, are also internal stakeholders. They have a vested interest in the financial performance and governance of the organization since their investments can yield profits or losses based on the company’s success.

In contrast, customers and suppliers are considered external stakeholders as they do not have a direct internal involvement in the organization. Community members and government representatives also fall under the category of external stakeholders, as their interests are more about the broader impact of the company's operations rather than its internal workings. These distinctions are important for understanding stakeholder relationships and ensuring that each group's needs and interests are considered in decision-making processes.