How does GRI define stakeholders?

The Global Reporting Initiative (GRI) defines stakeholders as individuals or groups that can affect or are affected by an organization’s actions, objectives, and policies. This definition emphasizes the broader scope of stakeholder engagement beyond just shareholders, highlighting that various parties—including employees, customers, suppliers, local communities, and other interest groups—play a crucial role in an organization’s performance and accountability.

Understanding stakeholders in this comprehensive way is essential for effective reporting and sustainability practices. By recognizing all possible influences and affected parties, organizations can better address their needs and expectations, leading to more responsible business practices and improved relationships. This stakeholder-centric approach aligns with the GRI’s principles of transparency and inclusivity, ensuring organizations consider a wide range of perspectives in their operations.

The other options are limited in scope and do not fully capture the essence of stakeholder engagement as defined by GRI. For instance, shareholders represent only a specific subset of stakeholders, while focusing solely on the community or regulatory bodies would exclude many important groups that affect or are affected by the organization.