Why are internal and external stakeholders important? How can stakeholders trust that organizations are doing the right thing?

Internal and external stakeholders are important since they are the driving engine of an organization by affecting and being affected by the organizational operations and decision making, from which their absence renders the existence of the organization null and void. The internal stakeholders for instance, constitute employees, managers and firms owners. Their input is invaluable since they develop the conceptual mode of operation, plans and conversely execute such objectives. Conversely, the external stakeholders constitute the customers, creditors, government and the society among others who in various ways affects the operations of the firm. The suppliers for instance, without their supplies to the firm, the organization would not be able to produce. The government policies affects the way organizations operate (Cameron, 2015).

The stakeholders can trust that the organization is doing the right thing if they are involved, and periodic updates given to them more so in the annual stakeholders meeting. For instance, the stakeholders would want to see the audited books of accounts which shows how effective the organization is able to implement its policies and use money in transparent ways.