In PR class, stakeholders are defined as the “parties invested in the success of a business or organization.” Their interests lie with the organization or company. However, they are also directly and indirectly affected by the organization’s decisions or what happens to them.
You can serve many roles that require you to understand the needs and wants of different stakeholders. However, with the increasing attention to corporate social responsibility, business stakeholders have grown and even include communities, governments, and trade associations.
Stakeholders
It might seem tricky in theory, especially compared to when you first submitted your business permit registration.
In short, your stakeholders are those affected by your business. In business, direct business stakeholders have put a direct stake in your organization or business.
As a result, they may have a say in business decisions and their successes. Some of the things that they do may include:
- Providing their feedback on company decisions or processes
- Show loyalty or participation
- Give more or less financial investment
- Taking a position that is contrary to the objectives and strategy of a company
In business, there are two kinds of stakeholders: internal and external.
Internal Stakeholders
Internal stakeholders are directly or financially part of the organization’s operations. If the company expands, grows, and achieves success, its internal stakeholders earn more. The nature of such happenings, especially if the organization is a start-up, is that it is high-risk, high reward.
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Owners
First, we will start with the owner. The owner founds and owns the company. In start-up lingo, the owner can be pertained to as the “founder.” They possess exclusive rights over their business and fully own the products and services impacting customers. They are directly responsible for any company’s failures or successes due to the amount of responsibility on their shoulders.
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Managers
It includes direct supervisors, Regional Managers, Section Managers or Department Managers, and high-level leaders. In a smaller organization, the managers carry out tasks and orders from the owner/s or senior manager for the employees to execute. Managers also monitor how their teams are doing and if they need support.
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Employees
The company hires employees to help them execute and complete tasks that result in products or services provided to clients or consumers.
External
Whenever a company makes decisions about its operations, they consider who they are targeting – and that is where the external stakeholders come in. Whether you like it or not, external stakeholders are instrumental to an organization’s business success because of their relationship with the business, their feedback, and their ability to purchase the product and service of your business.
The external stakeholders of a business may include:
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Customers
They buy products from the business. They may also review and give feedback about the product and service.
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Media
The media amplifies news about the company, especially if the company uses PR seeding. The media also can set an agenda about the business, especially if the business has a PR arm.
Wrapping Up
Stakeholders are crucial for the company for many reasons; when it comes to internal stakeholders, the company relies on them to accomplish goals, while external stakeholders indirectly touch the business.
Author’s Bio:
Angelo Castelda works as a contributor for a news magazine in Asia. He loves to learn and understand diverse cultures and aims to share through his writing his experiences around the world.
