Who are considered internal stakeholders in a business?

Study for the CIPS Introducing Procurement and Supply (L2M1) Test. Engage with flashcards and multiple choice questions, each question includes hints and explanations. Ace your exam with confidence!

Internal stakeholders are individuals or groups that are directly involved in the operations and management of a business. This includes employees, managers, and owners who play a significant role in the organization's day-to-day activities and strategic decision-making. They have a direct interest in the business's performance and success since their roles often depend on the organization's outcomes.

Understanding the concept of internal stakeholders is important because they are essential in influencing the culture, direction, and overall effectiveness of the company. Without their engagement and contributions, the business may struggle to achieve its objectives or maintain a motivated workforce.

In contrast, the other options refer to external stakeholders or parties that, while they may have interests in the business, do not have the same level of direct involvement. Customers and suppliers are essential to the supply chain but are not integral to the company's internal processes. Community members and regulators also do not participate in the internal workings of the business. Lastly, investors and shareholders do hold an interest in the company but are primarily concerned with profitability and returns rather than day-to-day operations.

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