How is the term 'stakeholder' defined in GRI Standards?

The term 'stakeholder' in GRI Standards is defined as any entity or individual significantly affected by the organization. This definition emphasizes the broad scope of stakeholders, which includes not only those with direct financial interests but also individuals and groups impacted by the organization's operations, policies, and practices. Stakeholders can encompass a variety of parties such as customers, suppliers, community members, non-governmental organizations, investors, and even competitors, reflecting their diverse interests and concerns related to the organization's sustainability performance.

This comprehensive understanding of stakeholders is crucial in the context of sustainability reporting, as it enables organizations to identify and engage with various groups that may influence or be affected by their business activities. By acknowledging the perspectives and needs of all stakeholders, organizations can enhance accountability, transparency, and ultimately, their impact on sustainable development.