In sustainability discussions, the term "stakeholders" typically refers to whom?

The term "stakeholders" encompasses a broad range of individuals and organizations that are impacted by or have an interest in a company’s activities, decisions, and overall impact on society and the environment. This includes not only shareholders who have a financial stake in the company but also employees, customers, suppliers, community members, non-governmental organizations (NGOs), regulators, and even the environment itself.

Understanding the diverse group of stakeholders is crucial in sustainability discussions because their interests and concerns can significantly influence a company’s sustainability practices and policies. Engaging with all relevant stakeholders allows organizations to better align their operations with societal values, address potential risks, and identify opportunities for sustainable growth.

This holistic view of stakeholders is pivotal in sustainability accounting as it emphasizes the need for companies to be accountable to a wider audience beyond just their investors. By recognizing the broader impact of their actions, companies can implement strategies that not only enhance their sustainability performance but also foster positive relationships with all stakeholders involved.