What term describes the group of people who have an interest in the organization's performance?

What term describes the group of people who have an interest in the organization's performance?

• A. Customer
• B. Regulator
• C. Stakeholder
• D. Competitor

Answer: (C)

Stakeholders are the people and groups with an interest in how the organization performs, because outcomes affect them directly or indirectly. This broad term covers everyone who cares about the organization’s success or failures—owners, employees, customers, suppliers, regulators, and the surrounding community. Recognizing all stakeholders helps asset protection and risk planning address a range of concerns, from safety and compliance to service quality and public perception. A customer is one type of stakeholder, a regulator is another type, and a competitor is also a type; each fits under the larger umbrella of stakeholders. That wide scope is why the term stakeholders is the best description.

Stakeholders are the people and groups with an interest in how the organization performs, because outcomes affect them directly or indirectly. This broad term covers everyone who cares about the organization’s success or failures—owners, employees, customers, suppliers, regulators, and the surrounding community. Recognizing all stakeholders helps asset protection and risk planning address a range of concerns, from safety and compliance to service quality and public perception. A customer is one type of stakeholder, a regulator is another type, and a competitor is also a type; each fits under the larger umbrella of stakeholders. That wide scope is why the term stakeholders is the best description.