External Stakeholders

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Internal stakeholders are individuals or entities within a business such as employees, managers, the board of directors, and investors. External stakeholders are individuals or entities not within a business itself but who care about or are affected by its performance such as consumers, regulators, investors, and suppliers. The internal stakeholders affected in this scandal were the university, Assistant Football Coach Mike McQueary, President Graham Spanier, Senior Vice President of Finance and Business Gary Schultz, Head Football Coach Joe Paterno, Athletic Director Timothy Curley, and the Board of Trustees. The external stakeholders affected by the scandal were the NCAA, students, vendors, retailers, and the community based businesses …show more content…

The university had to spend millions of dollars in combined legal, consultant, and public relation fees. They also had to pay fines imposed from the NCAA which they ended up paying to the prevention and recovery of child sex abuse. The university lost scholarships as imposed by the NCAA, and also lost funding from some of their private supporters as well as a decline in enrollment at the school. The employees involved in the scandal lost their prestige and their jobs even Mike McQueary, who reported witnessing Sandusky in the act of sexually abusing a young boy (CNN.com, 2017). The NCAA received negative publicity from their punishment imposed on the university. The vendors at the football stadium were affected by a loss of revenue due to the decline of attendance to football games as well as the retailers who sold Penn State merchandise. Community based businesses were also affected by the decline in enrollment at the university and the reduced attendance to sporting events. I believe the biggest stakeholders that were affected more than anyone involved were the victims. No one stood up for them, but instead, try to keep it quiet as if nothing ever happened (CNN.com, 2017). When a crisis of this magnitude occurs, it will affect more than the school, NCAA, staff, students, business, but others like the churches, stocks on wall street. I believe that it can touch almost every aspect of

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