What role do pressure groups play as stakeholders?

Pressure groups play a significant role as stakeholders by advocating for social and environmental issues. They represent the interests of specific communities or causes, and their primary function is to raise awareness and influence business practices regarding ethical conduct, sustainability, and corporate responsibility. These groups may lobby businesses to adopt more sustainable practices, change harmful policies, or take actions that contribute positively to society and the environment.

Unlike investors, pressure groups do not provide financial resources to the business. They also do not engage directly in the management or operational aspects of a company, nor do they have the authority to enforce competition laws, which is typically a government function. By focusing on social and environmental advocacy, pressure groups can affect public perception and potentially influence company strategies, making their role as stakeholders crucial in shaping business decisions.