What is one possible external stakeholder group of ABC, other than jewellery makers?

• A. Local suppliers
• B. Regulatory agencies
• C. Shareholders
• D. Environmental organizations

Answer: (D)

External stakeholders are groups outside the business who can be affected by what the company does or who can influence its actions. Environmental organizations fit this role because they monitor how the company’s operations impact the environment and sustainability. They may campaign, advocate for stricter standards, or push for transparent sourcing and responsible practices. In a jewellery business, concerns about mining methods, waste, water use, and the ethical sourcing of materials are exactly the kinds of issues environmental groups focus on, making their influence meaningful for strategy, reputation, and compliance.

Local suppliers and regulatory agencies are also external, but they serve different functions—suppliers provide inputs to production, and regulators enforce laws. Shareholders are usually considered internal stakeholders since they are owners of the company. Among external groups, environmental organizations are a clear and direct example of how public-interest groups can shape the business environment.