Which of the following are examples of connected stakeholders in a private organisation? Select TWO that apply.

Stakeholders are categorised based on their relationship with an organisation. Connected stakeholders are those with a direct commercial or contractual link. Customers engage in transactions to buy goods or services, creating a direct commercial relationship. Shareholders (or owners) have a direct financial investment and legal ownership stake in the organisation. Both have a formal connection defined by contracts, transactions, or legal status, distinguishing them from external stakeholders who have an interest but no formal link.

B. The local community is an external stakeholder; it is affected by the organisation's activities but has no direct contractual relationship.
C. The media is an external stakeholder that influences and reports on the organisation but does not have a commercial connection.
D. The government is typically an external stakeholder, acting as a regulator, although it can become a connected stakeholder if it is a customer.

1. CIPS. (2018). Commercial Negotiation L4M5. Profex Publishing. Chapter 1, 'Commercial Relationships', Section: 'Stakeholders', pp. 10-12. (Defines connected stakeholders as those with a contractual relationship, explicitly listing customers and shareholders/owners).

2. Johnson, G., Whittington, R., Scholes, K., Angwin, D., & Regnér, P. (2017). Exploring Strategy (11th ed.). Pearson. Chapter 5, 'Stakeholders and Governance', Section: 'Stakeholder Groups', p. 141. (Categorises stakeholders, identifying customers and shareholders as having an 'economic' or market-based relationship).