The Classification of Stakeholders
Internal & external
Voluntary & involuntary
Internal and External Stakeholders
Those included with in the organizations such as employees or Managers.
External stakeholders are such groups as suppliers or who are not generally considered to be a par of the organization.
Voluntary and involuntary Stakeholders
Voluntary stakeholders can choose weather or not to be a stakeholder to an organization whereas involuntary stakeholders cannot.
An employee can choose to leave the employment of the organization and therefore is a voluntary stakeholder. The local society or environment are note not able to make this choice and must therefore be considered to be involuntary stakeholders.
Triple Bottom Line
“People” (human capital) pertains to fair and beneficial business practices toward labour and the community and region in which a corporation conducts its business.
A TBL company conceives a reciprocal social structure in which the well-being of corporate, labour and other stakeholder interests are interdependent.
“Planet” (natural capital) refers to sustainable environmental practices. A TBL company endeavors /strive to benefit the natural order as much as possible or at the least do no harm and curtail environmental impact.
TBL manufacturing businesses which typically conduct a life cycle assessment of products to determine what the true environmental cost is from the growth and harvesting of raw materials to manufacture to distribution to eventual disposal by the end user.
“Profit” is the economic value created by the organization after deducting the cost of all inputs, including the cost of the capital tied up.
Therefore, an original TBL approach cannot be interpreted as simply traditional corporate accounting profit plus social and environmental impacts unless the “profits” of other entities are included as a social benefits.
Currently, the cost of disposing of non-degradable or toxic products is borne financially by governments and environmentally by the residents near the disposal site and elsewhere.
In TBL thinking, an enterprise which produces and markets a product which will create a waste problem should not be given a free ride by society.
It would be more equitable for the business which manufactures and sells a problematic product to bear part of the cost of its ultimate disposal.