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Sir, on page 35 (Chapter 5), of the Study Notes, in the paragraph of ‘Internal stakeholders’ it is written, “Internal stakeholders are those who are…. ….example would be the employees, the ‘shareholders’ and the managers.”
Weren’t the ‘shareholders’ in the category of Connected stakeholders? Is this a typing mistake? Or, did the rules change, and now they are Internal stakeholders? Because, in the BPP textbook (Dec 2011 to Dec 2012), it’s written that ‘shareholders’ are Connected stakeholders.
Please help.
Thanks in advance! 🙂
There are no real rules on this.
It seems to me that you could argue that since shareholders have ultimate power in the company through the AGM, where they can hire and fire directors, shareholders could easily be regarded as internal. Certainly in small companies they are likely to be very hands on.
In larger companies, shareholders tend to be more remote (but still have ultimate power).
In fact, internal/connected/external doesn’t help much in analysing stakeholders. Mendelow’s Matrix is much more useful (key players etc).
Probably best for the exam if you go mainstream and treat shareholders are connected.
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