Business Society: Stakeholder approaches to Corporate Sustainability

Age of Sustainability

Swilling (2017):

Businesses are increasingly expected to create value for all stakeholders.

Stakeholder Theory

Freeman et al. (2010):

Creating as much value for stakeholders, without resorting to trade-offs.

Primary Stakeholders

- The firm

- Communities

- Customers

- Employees

- Investors

Secondary stakeholders

- Government

- Media

- Competitors

- Environment

- Special interest groups

- Local communities

Stakeholder engagement

An ongoing process of relationship building between a business and its stakeholders.

Stakeholder descriptive value

Donald & Preston (1995):

When stakeholder theory is used to describe and explain corporate characteristics and behaviours.

Stakeholder instrumental value

Donald & Preston (1995):

When stakeholder theory is used to identify connections between stakeholder management and the achievement of traditional corporate objectives.

Stakeholder nominative value

Donald & Preston (1995):

When stakeholder theory is used to interpret the function of the corporation, including the identification of moral or philosophical guidelines for the operation and management of corporations.

Stakeholder involvement

Sulkowski, Edwards & Freeman (2018):

Co-operation between secondary stakeholders and firms can provide benefits on both sides.

Stakeholder shaking

Sulkowski, Edwards & Freeman (2018):

The act of co-operation with those affected by a firm to change awareness, behaviour and networks so society supports positive innovation.

Profit-making paradox

Blattberg (2004):

The contradiction of trying to be virtuous (stakeholder approach) for non‑virtuous (profit‑driven) reasons — using ethical behaviour as a tool for profit rather than as an end in itself.