Governance Stakeholders: What are They?
Every organization comprises internal and external stakeholders from diverse groups. These stakeholders represent various groups that directly or indirectly influence the success and sustainability of businesses. Organizations strive to operate sustainably and successfully by establishing effective communication with these stakeholders and considering their interests. Therefore, corporate governance, forming the foundation of corporate trust, is becoming increasingly widespread each day, irrespective of the size (small or large) or the type (public or family-owned) of the enterprise.
Corporate governance is the responsibility of everyone directing relationships and communication with all partners of an organization. Practices that form the basis for this governance becoming a cultural characteristic of an institution are typically carried out by Boards of Directors. Examples of internal and external stakeholders are provided below:
Board of Directors: Top-level executives of the business, including the CEO and other managers, are crucial stakeholders influencing decision-making processes. They provide insights into how value can be derived from IT use and clarify relevant board responsibilities.
Senior Management: Guides how the performance of IT will be organized and monitored across the business.
Business Managers: Assist in understanding how the required IT solutions for businesses can be obtained and how new technology can be best utilized for new strategic opportunities.
IT Managers: Provide the best guidance on establishing and structuring the IT department, managing IT performance, conducting efficient and effective IT operations, controlling IT costs, and aligning IT strategy with business priorities.
Assurance Providers: Assist in managing dependence on external service providers, securing IT, and ensuring the presence of an effective and efficient internal control system.
Risk Management: Assists in identifying and managing all risks related to IT.
Employees: The individuals directing and sustaining the daily operations of the business.
Labour Unions: Unions or worker representatives advocating for labour rights, representing the interests of employees.
Shareholders and Partners: Individuals or entities providing financial support to the business and holding ownership shares.
Regulators: Government agencies enforcing legal regulations governing the business. They ensure compliance with current rules and regulations, helping the business have the correct governance system to manage and sustain compliannce.
Business Partners: Other businesses or organisations collaborating with the business. They may collaborate on joint projects, ensuring that the operations of a business partner to comply with safe, reliable, and applicable rules and regulations.
IT Companies: Help ensure that the operations of an IT company comply with safe, reliable, and applicable rules and regulations.
Customers: Individuals or organizations supporting the business by purchasing products or services. While customers are external stakeholders, they are the main source of revenue for the business.
Competitors: Other businesses operating in the same industry or market segment. Competitors can influence the market competitiveness of a business.
Society: The community in which the business operates, including local communities. A group that evaluate and monitors the societal impacts of the business.
Financial Institutions: Banks, lenders, and financial institutions that assist in financing and providing credit to the business.
Media and Public Opinion: Media and the general public that influence the reputation of the business. Positive or negative news and information can shape the impression of the business.
Environment and Nature: An important external stakeholder group for businesses that use or impact natural resources. Includes environmental agencies and activist groups assessing environmental impacts.
Author: Nazlıcan Hatice TANIN/ BeyazNet Information Systems Audit Specialist