Internal and External Stakeholders (Cambridge International A-Level Business)
Exam board Cambridge International · A-LevelUpdated 2025-06-09
Introducing business stakeholders
- A stakeholder is any person, group, or organisation that has an interest in or is affected by the activities and decisions of a business
Stakeholders are individuals or groups with an interest in the activities of a business
- A business needs to take into account the needs and interests of its stakeholders in order to operate successfully and ensure long term success
- Different stakeholders may have different priorities, which means that at times, it may be difficult for the business to please all stakeholders
Internal stakeholders
- An internal stakeholder is someone who is directly involved inside the organisation and is affected by its day-to-day operations and decisions
Owners
- Provide capital and take overall responsibility for the business
- Invest in a company by buying shares
| Rights | Responsibilities |
|---|---|
| - Right to profits, right to make decisions (especially in small firms), right to close the business - Right to dividends, vote at AGMs, access to key financial info | - Run the business ethically and legally, reinvest or distribute profits, ensure long-term success - Vote responsibly, monitor company performance, support long-term growth |
Employees
- Work in the business and carry out tasks assigned to them
| Rights | Responsibilities |
|---|---|
| - Right to fair pay, safe working conditions, job security, non-discrimination | - Work effectively, follow company rules, respect colleagues and customers |
Managers and directors
- Lead teams and run daily operations
| Rights | Responsibilities |
|---|---|
| - Right to make decisions within their department or branch | - Meet targets, manage people and resources, report to senior leaders |
External stakeholders
- An external stakeholder is a person or group outside the business who is affected by or has an interest in its activities and performance
Customers
- Purchase and use goods or services
| Rights | Responsibilities |
|---|---|
| - Right to safe, good-quality products, fair prices, clear information | - Use products correctly, pay on time, give feedback |
Suppliers
- Provide goods, materials or services needed for production
| Rights | Responsibilities |
|---|---|
| - Right to be paid on time, fair contracts, clear communication | - Deliver on time, maintain quality, be reliable |
Creditors
- Lend money or provide trade credit to the business
| Rights | Responsibilities |
|---|---|
| - Right to be repaid on time, to receive interest, if agreed | - Provide funds as agreed; assess business risk before lending |
Local community
- Lives near or is affected by the business’s operations
- May be employed by the business
| Rights | Responsibilities |
|---|---|
| - Right to clean environment, jobs, reduced noise and traffic | - Participate in consultations, give feedback, support local business where possible |
Government
- Regulates business activity, collects tax and sets laws
| Rights | Responsibilities |
|---|---|
| - Right to collect taxes, inspect for compliance, enforce regulations | - Enforce laws fairly, support economic stability, provide public services |
Pressure groups
- Campaign to influence business behaviour, especially on social issues
| Rights | Responsibilities |
|---|---|
| - Right to protest, raise awareness, organise campaigns | - Act lawfully, communicate concerns clearly, represent public or ethical views |
Competitors
- Offer similar products and services in the same market
| Rights | Responsibilities |
|---|---|
| - Right to compete fairly and legally | - Compete ethically; avoid misleading advertising or copying innovations |
Was this revision note helpful?
Build on this topic