What is the definition of a "stakeholder" in an organization?

A stakeholder in an organization is defined as any individual or group that has an interest in or is affected by its actions. This definition encompasses a broad range of entities beyond just employees or investors, recognizing that various parties can be impacted by the decisions and operations of the organization.

For instance, stakeholders include customers who rely on the organization's products or services, suppliers who provide necessary resources, community members whose lives may be influenced by the organization's presence, regulators who oversee compliance with laws, and even competitors who operate in the same market. Each of these groups has a vested interest in the organization's performance and strategy, illustrating the multifaceted nature of stakeholder relationships in the business environment.

This comprehensive understanding highlights the importance of managing stakeholder relationships and considering their needs and concerns in organizational decision-making processes. Engaging with a wide range of stakeholders is essential for fostering good relationships and ensuring long-term sustainability for the business.