Which of the following is considered an external stakeholder?

Customers are identified as external stakeholders because they are individuals or entities that are affected by or can influence an organization but do not operate within the internal structure of the organization. They interact with the organization primarily through the purchase and use of its products or services. This relationship is characterized by a transactional nature where the organization aims to meet the needs and expectations of customers to sustain and grow its business.

In contrast, employees, investors, and board members are considered internal stakeholders as they are directly involved in the organization’s operations and decision-making processes. Employees work within the organization and contribute to its functions, investors provide capital and expect a return on their investment, and board members make strategic decisions to guide the organization’s direction. Each of these groups may have a vested interest in the overall performance of the organization, but they do not represent the external influence and feedback that customers provide.