Association of Chartered Certified Accountants (ACCA) Certification Practice Test

Which of the following represents a connected stakeholder?

1. Employees of the organization

2. Local community residents

3. Suppliers to the organization

4. Regulatory authorities

The correct answer is: Suppliers to the organization

The designation of suppliers as a connected stakeholder is based on their direct and integral relationship with the organization. Connected stakeholders are those that have a substantial impact on or are significantly impacted by the organization’s operations and decisions. Suppliers provide the necessary materials, services, or products that an organization relies on to function effectively. This relationship can influence the quality, cost, and efficiency of the organization’s offerings. Additionally, the dynamics between a company and its suppliers can affect various strategic decisions, including pricing, production planning, and inventory management. Understanding this relationship is crucial for effective supply chain management and for maintaining a collaborative partnership that can enhance overall business performance. Therefore, suppliers represent a connected stakeholder due to the dependent and interactive nature of their relationship with the organization, making their interests and engagement vital for the organization’s success.