External stakeholders are individuals or groups that do not work within an organization but are affected by its activities. They can include customers, suppliers, investors, community members, and regulatory bodies. Their interests and opinions can influence the organization's decisions and overall success. These stakeholders play a crucial role in shaping the organization's reputation and performance. For example, customers provide feedback that can lead to product improvements, while investors may influence financial strategies. Engaging with external stakeholders helps organizations understand their needs and expectations, fostering better relationships and enhancing overall effectiveness.