Difference Between Internal Stakeholders and External Stakeholders

A company includes various members that comprise to form a stakeholder, and the person or other factors that affect the complete organization is known to be stakeholder who is further consisting of internal stakeholder and external stakeholder.


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Test your knowledge about topics related to business

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What is revenue?

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The six Ps are collectively known as the Marketing Mix. They are ways in which organisations differentiate themselves. They include

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Modular furniture __________.

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Whose Liability is limited to the extent of his capital to the firm?

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The method of evaluating the efficiency of workers is termed as _________.

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The Standard of living is the number of goods and services people can buy with the money they have.

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Which of the following speculators expect fall in the prices of securities in the near future?

8 / 10

Productivity means how much was done compared to what it took to do it.

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A building jointly owned is called office________.

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A valid definition of a business purpose is to ______.

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Internal Stakeholders vs External Stakeholders 

The difference between Internal Stakeholder and External Stakeholder is that the internal stakeholder is defined or stated as any group of people or a single person that is a part of the organization, whereas comparatively, on the other hand, the external stakeholder is defined or stated as the person or group of person who is not a part of the organization but still gets affected by the slightest change in the organization.

Internal Stakeholders vs External Stakeholders

They are the primary responsibility of the company to be looked upon. They have much interest in the ongoing business. 

External Stakeholders are the ones that don’t have to face the direct impact of the decision made by the company or the organization. As they are not affected directly, they don’t take much interest in the business.

Comparison Table

Parameters of ComparisonInternal StakeholdersExternal Stakeholders
DefinitionIndividual member or group members of any company or organization Person or group who isn’t the member but is readily affected by the company indirectly
Impact DirectIndirectly
Who are they?Individuals working for the organizationIndividuals or groups influenced by their work
Employment Given YesNo
Responsibility by the EmployeesDirectly or primaryIndirectly or secondary
Consists OfEmployee, its owner, investors, management, board, and many othersCustomer, rivalry, government, society, creditors, supplier, retailer, and many others
Knows AboutInternal matters of the companyPublicly available information

What is Internal Stakeholders?

Internal stakeholders are the single person or the group of several members that are part of the company or the organization. Some of the members known to be part of the company or organization as internal stakeholders are – employees of the company, management, directors, owner, and many others.

The varied activities performed by the company directly affect these above-mentioned members. The interest of the members of the company is more as any decision made will affect them too.

They are also aware of the internal matters taking place within the company. They employ their internal stakeholders in their organization.

What is External Stakeholders?

External stakeholders are the one single individual or any group of people that is not a part of any organization or any company but still gets affected by the changes or decisions made within it.

The activities performed within the company do not affect the members of the external stakeholder directly. Although they might be looking forward to the success of the company but still got indirectly affected.

Theses members although aren’t a member of the respective company or organization but manage them externally and they are mostly aware with the information that is available publicly.

Main Differences Between Internal Stakeholders and External Stakeholders

  1. The example for the internal stakeholders consists of their employees, management, board, directors, owner, and others whereas comparatively, on the other hand, the example for the external stakeholders consists of their suppliers, retailers, creditors, customers, rivalry company, society, and many others.
  2. The members of the internal stakeholders know maximally about the internal matters of the company or the organization, whereas comparatively, on the other hand, the members of the external stakeholder know about the information that is publicly available about the company or the organization.  


  1. https://www.tandfonline.com/doi/abs/10.1080/01446190701821810
  2. https://www.sciencedirect.com/science/article/abs/pii/S026378631930866X
  3. https://www.proquest.com/openview/2c1ba4858e25e10a8c835d5bf247db64/1?pq-origsite=gscholar&cbl=18750&diss=y
  4. https://www.sciencedirect.com/science/article/abs/pii/S026378631830142X
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