Defining the Role of Stakeholders

Stakeholders are the individuals or groups to which an organization is responsible. Internal stakeholders (such as employees, managers, and directors) need to understand and participate in ethical corporate culture. External stakeholders (such as communities, customers, suppliers, and shareholders) need to appreciate your organization’s ethical principles and take part in upholding standards of conduct.

Characterizing stakeholders

Stakeholders fall into two groups: primary and secondary. Primary stakeholders are those necessary for a business’s survival, including suppliers, employees, customers, and shareholders. Secondary stakeholders are those not immediately necessary for a firm’s survival, including the ...

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