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ACCA Strategic Professional · Strategic Business Leader · Stakeholder analysis and organisational social responsibility

Karela Mining proposes to extend an open-cast mine. A downstream community will suffer water pollution but has no contract with Karela and no formal voice in decisions. Which classification of this stakeholder group is most accurate?

The community is an external stakeholder with no contractual relationship. It sits outside Karela, has no contract and supplies no resources, yet it is affected by pollution from the mine. This makes it easy to overlook in stakeholder analysis despite its legitimate concern.

  1. AInternal stakeholder with a contractual relationship
  2. BConnected stakeholder with a financial interest
  3. CExternal stakeholder with no contractual relationshipCorrect
  4. DPrimary stakeholder because it supplies resources

Explanation

The community is outside the organisation and has no contract, so it is an external, non-contractual stakeholder. It is not internal, not connected through a financial or supply link, and it supplies no resources to Karela. Such groups are often overlooked despite being affected by the operations.

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