Narrow stakeholder
A narrow stakeholder, in the narrow–wide classification used in stakeholder analysis, is closely affected by or dependent on the organisation’s activities. The classification focuses on the stake and dependence rather than automatically measuring power. Examples can include employees or suppliers whose livelihoods or business rely heavily on the organisation. Terminology varies across stakeholder theories, so define the relationship being assessed.
Worked example
A small supplier earns most of its revenue from one customer. Its strong dependence makes it a narrow stakeholder in that customer’s decisions, even if it has little bargaining power.
Common mistake
Do not treat narrow as meaning unimportant or confuse dependence on the organisation with the organisation’s dependence on the stakeholder.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | SBL | Supporting | September 2026–June 2027 |