Local community

External stakeholders are outside it: customers, suppliers and the local community, as well as groups such as government and pressure groups. Someone can belong to more than one group: an employee might also own shares and live nearby.

The local community and pressure groups influence reputation and public support. Residents may complain about noise or object to proposed expansion. A pressure group may campaign publicly or organise a boycott, encouraging customers not to buy.

External stakeholders are outside the business but have a relationship with, or an interest in, its activities. They include customers, suppliers, government and the local community. Being external does not mean being unimportant: a business needs customers to buy its products and suppliers to provide the resources it uses.