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External stakeholder

An external stakeholder is outside the organisation, although the label’s boundaries depend on the framework. In a two-way classification it includes outside trading partners and other affected groups. In an internal–connected–external classification, connected economic relationships are separated and external commonly refers to groups such as regulators and the wider community. Being external does not imply low power, weak interests or absence of valid claims.

Worked example

Neighbours affected by factory noise are external stakeholders. A supplier is external under a two-way model but normally classified as connected when the three-way model is used.

Common mistake

Do not assume the word has identical mutually exclusive boundaries in every framework. State the classification before assigning examples.

Where it appears in your exams

QualificationExamRelationshipPeriod
ACCA BT Direct September 2026–June 2027
ACCA SBL Supporting September 2026–June 2027
FIA FBT Direct September 2026–June 2027