Which option is NOT typically considered an external stakeholder of ABC?

• A. Government of Country Z
• B. Construction firms
• C. Local communities
• D. Internal employees

Answer: (D)

The concept being tested is the distinction between external and internal stakeholders. External stakeholders are groups outside the organization that can affect or be affected by its activities, such as government bodies, suppliers or contractors, and local communities. Internal employees, on the other hand, are inside the organization and hold a stake in its fortunes as part of the company.

Because internal employees are part of ABC, they are considered internal stakeholders, not external. The government of Country Z is external because it's outside the organization and interacts with it as a regulator and policy maker. Construction firms are external as external contractors or suppliers. Local communities are external since they are outside the company but affected by its operations.

So the one not typically considered an external stakeholder is internal employees.