Which stakeholder group includes potential customers?

The correct choice identifies potential customers as part of external stakeholders. External stakeholders encompass individuals or groups that do not directly belong to an organization but have an interest in its operations and outcomes. These can include potential customers, suppliers, investors, community members, and regulatory bodies, among others.

Potential customers are classified as external stakeholders because their relationship with the organization is not based on employment or internal governance but rather on their interest in the goods or services offered. They play a crucial role in shaping the market and the financial success of the organization as their purchasing decisions can directly influence revenue and market perception.

In contrast, internal stakeholders are typically comprised of employees, management, and owners who are directly involved with the operations of the organization. Primary stakeholders usually refer to those whose interests are directly affected by the organization’s actions, such as employees, consumers, and shareholders, somewhat overlapping with external stakeholders but not limited to potential customers. Government stakeholders refer specifically to entities that regulate or govern the organization, which is distinct from potential customers.

Understanding the distinction between these groups helps in recognizing how various stakeholders can impact a company’s strategy and operations in different ways, particularly in areas like sustainability and ESG considerations.