What defines external stakeholders?

External stakeholders are defined as groups that could be affected by the organization but aren't internally linked. This includes various parties such as customers, suppliers, the community, and regulatory bodies that rely on or are impacted by the organization’s operations but do not participate directly in its day-to-day activities.

Understanding this definition is crucial, as it highlights the significance of the external environment in which a business operates. External stakeholders can influence strategic decisions through their expectations, needs, and feedback, making it essential for organizations to engage with them effectively to maintain a positive relationship and achieve their objectives.