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The theory of governance

3.2 Internal corporate governance stakeholders
 A useful definition of a stakeholder, for use at this point, is 'any
person or group that can affect or be affected by the policies or
activities of an organisation'.
 there are a number of internal parties involved in corporate
governance. These parties can be referred to as internal
stakeholders.

Each internal stakeholder has:

 an operational role within the company

 a role in the corporate governance of the company

 a number of interests in the company (referred to as the stakeholder'claim').

3.3 External corporate governance stakeholders

 A company has many external stakeholders involved in corporate governance.

Each stakeholder has:

 a role to play in influencing the operation of the company

 its own interests and claims in the company

A stakeholder claim is where a stakeholder wants something from an
organisation. These claims can be concerned with the way a
stakeholder may want to influence the activities of an organisation or by
the way they are affected by the organisation.

There are:

 Direct claims – made by stakeholders directly with the organisation and are
unambiguous e.g. trade unions, they have their own voice

 Indirect claims – where the stakeholder is “voiceless”, e.g. an individual
customer of a large retail organisation or the environment with the inevitable
problem of interpretation.

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