Certified Supply Chain Professional (CSCP) Practice Exam

Who are considered external stakeholders in a business context?

1. Only the employees

2. Investors and communities

3. Just the management team

4. Only suppliers and customers

The correct answer is: Investors and communities

External stakeholders in a business context refer to individuals or groups that do not operate within the organization but are still affected by its activities and decisions. Investors and communities are classified as external stakeholders because they have an interest in the company's performance and its impact on the broader environment. Investors seek returns on their investments and are concerned about the company's financial health, while communities may be affected by the company's operations, such as local job creation or environmental practices. Understanding the roles of investors and communities highlights a broader perspective of stakeholder engagement, emphasizing the importance of considering their interests and concerns when making business decisions. This is crucial for sustaining organizational reputation and maintaining positive relationships with those outside the organization.