Companies are constantly challenged to meet the needs and expectations of many actors that affect their activities and operations. Both internal and external stakeholders play a vital role in the functioning of any organization. Internal stakeholders include employees, management, directors, as well as other business owners and investors. External stakeholders, on the other hand, include competitors, customers, the government, and other parties that can influence businesses. In order to successfully collaborate with stakeholders, it is necessary to understand their importance for organizations. The purpose of this essay is to discuss stakeholders’ roles in companies’ activities and analyze the examples of two organizations that have successfully collaborated and managed internal and external stakeholders.
In considering the importance of internal and external stakeholders in achieving business success and strategic goals, it is important to understand that they are interrelated, and one cannot do without the other. Internal stakeholders are the foundation of the business, and they are necessary to create products and services provided to customers. At the same time, external stakeholders help the business gain access to new potential customers and audiences, improving its image and expanding its market (Azevedo, 2022). Therefore, it is difficult to determine which stakeholders are more important, and which should be prioritized.
One should state that, although both internal and external stakeholders need to be satisfied to achieve success, internal stakeholders are more important. They are the foundation of the business and guarantee the realization of companies’ goals. In addition, employee satisfaction allows businesses to achieve success, complete their mission, and reach their objectives. Internal stakeholders are critical for operations, as they are directly involved in processes and have a significant impact on businesses’ success (Marques et al., 2020). In most cases, internal stakeholders determine the strategy and culture of the organization and ensure the effectiveness of operations.
In order to understand how an organization can collaborate well with its internal stakeholders, an example of the Apple company can be cited. Apple constantly works to make its employees feel valued and satisfied with their work. One should note that the company effectively uses the latest technologies to motivate, develop, and support its employees in different countries. It also regularly conducts surveys and polls for the purpose of understanding the opinion of employees and addressing their needs in an efficient manner (Nicolescu & Nicolescu, 2021). Thus, changes in internal stakeholders’ visions and opinions regarding the company’s operations can influence real changes in processes and activities. As a result, employees’ satisfaction increases.
In its turn, Unilever is one of the world’s largest consumer goods companies that effectively collaborates with external stakeholders. The company’s work with external stakeholders is realized through its sustainable development strategy. One should note that Unilever works with suppliers, customers, and local communities to ensure environmentally sustainable production processes and products. As a result, the company’s managers regularly meet with various external stakeholders, including non-governmental and non-commercial organizations, as well as government bodies, in order to discuss specific current issues and develop joint solutions for communities (Azevedo, 2022; Nicolescu & Nicolescu, 2021). The company also effectively uses social media to maintain direct relationships with customers. Thus, the focus is on advertising and marketing to attract more customers and improve Unilever’s brand position. In addition, the company works with the government to improve its products and services and provide the best conditions for its customers.
To conclude, it can be said that both internal and external stakeholders should be viewed as important actors for business’s success. While external stakeholders help organizations expand in the market and dominate it, internal stakeholders play a more important role in achieving strategic goals. However, in order to achieve long-term success, an organization must have the right strategy to satisfy both internal and external stakeholders with more reliance on addressing internal stakeholders’ interests.
References
Azevedo, L. (2022). Communication with internal and external stakeholders. In B. Haupt & L. Azevedo (Eds.), Crisis communication planning and strategies for nonprofit leaders (pp. 81-91). Routledge.
Marques, P., Bernardo, M., Presas, P., & Simon, A. (2020). Corporate social responsibility in a local subsidiary: Internal and external stakeholders’ power. EuroMed Journal of Business, 15(3), 377-393.
Nicolescu, O., & Nicolescu, C. (2021). Stakeholder management and social responsibility: Concepts, approaches and tools in the covid context. Taylor & Francis.