Which of the following are internal stakeholders?

• A. Government, banks
• B. Customers and suppliers
• C. Employees, owners/shareholders and managers
• D. Local community

Answer: (C)

Internal stakeholders are the people inside an organization who have a direct interest in what the business does and are affected by its performance. These are the groups with formal roles within the company: employees, owners or shareholders, and managers. They are part of the system and their day-to-day activities and outcomes (like jobs, wages, profits, and decision-making) are closely tied to how the business performs.

The other groups are external to the organization. Government and banks operate outside the company but can influence it through regulation or financing. Customers and suppliers interact with the business from the outside, providing revenue or inputs, but they aren’t part of the company. The local community is also outside the firm, affected by its operations but not a member of the organization.

So the option that lists only people inside the organization—employees, owners/shareholders, and managers—best fits the idea of internal stakeholders.