Who are the external stakeholders of a company


Discuss the below:

The external stakeholders of an organization can be classified as lenders, investors, communities, customers, partners and government agencies (Kokemuller, 2018). It is important to receive buy-in from external stakeholders because they are invested in the success of the company. Without the buy-in from the external stakeholders, business ventures such as strategic planning will fail. They are invested into making the decisions that will help the organization progress on. One of the most important pieces of involvement from management is engagement (Bradley, 2018). Engagement is important because it creates open dialogue between the managers and the external stakeholders. Communication is important because it informs the external stakeholders of any changes that may take place within the organization, how it may affect their needs as an external stakeholder and what is needed from the external stakeholder. A customer may have insight on products that they think the organization should offer, or the community may have specific needs within a certain location. It is important to communicate early and often with the external stakeholders to receive buy-in. Also buy-in from stakeholders comes from building trust and rapport. This means that the managers should be open and honest about good and bad scenarios to build trust.

Kokemuller, N. (2018). Who are the External Stakeholders of a Company?

Bradley, J. (2018). What is a Stakeholder Buy-In?

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