Who are considered external stakeholders?

External stakeholders are individuals or groups who have an interest in the performance and activities of an organization but are not directly part of its operations. They can influence or be influenced by the organization but do not typically have a formal role within it, unlike internal stakeholders such as employees and managers.

Suppliers and the local community represent typical external stakeholders. Suppliers provide goods or services necessary for the organization to function, creating a business relationship that is critical to the company’s operations. The local community plays an important role as well; community members may be affected by the business's activities, operational decisions, and policies, such as those impacting the environment or local economy. Their interests must be considered for the organization to maintain a positive relationship and its reputation within that community.

In contrast, other options may include groups that are primarily internal stakeholders or possess formal roles within the organization, such as managers, employees, investors, or board members. While investors and creditors can be considered external in some context due to their financial relationship, the most relevant and clear external stakeholders in this case are suppliers and residents in the community where the business operates.