Stakeholders Matter: A New Paradigm for Strategy in Society (Business, Value Creation, and Society)

Stakeholders Matter......Page 3
Business, Value Creation, and Society......Page 4
Title......Page 5
Copyright......Page 6
To Alexandra Sachs, for whom the paradigm shift matters......Page 7
Contents......Page 9
Figures......Page 14
Tables......Page 16
Foreword......Page 17

Acknowledgments......Page 19
The future of business in society: social and economic changes......Page 21
Historic nature of paradigms......Page 23
Post-Enlightenment Capitalism......Page 24
Our contribution to the stakeholder paradigm......Page 26
Path toward a new stakeholder paradigm......Page 28
Part I Development of the basic assumptions of a new stakeholder paradigm......Page 31
The economic paradigm of the theory of the firm......Page 33
What is the purpose of the firm and its underlying principle of value creation?......Page 34
What are the main attributes of actors and their behavior?......Page 35
Final remarks......Page 36
The strategy theory: general remarks......Page 38
The strategy theory: the “Industry Structure View of Strategy” (ISV)......Page 39
What is the purpose of the firm and its underlying principle of value creation?......Page 40
Who are the actors and who are the owners?......Page 41
What are the main attributes of actors and their behavior?......Page 42
What are the conditions of the environment?......Page 43
Final remarks on the ISV......Page 44
The strategy theory: the “Resource-based View of Strategy” (RbV)......Page 46
What is the purpose of the firm and its underlying principle of value creation?......Page 47
What are the main attributes of actors and their behavior?......Page 49
Final remarks on the RbV......Page 50
The economic paradigm revisited......Page 52
Who are the stakeholders?......Page 55
Empirical aspects......Page 56
The strategic dimension in stakeholder definitions......Page 57
Dyadic interaction......Page 58
Our understanding from a descriptive perspective......Page 60
Instrumental dimension......Page 61
Stakeholder relations pay off......Page 62
Normative stakeholder dimension......Page 63
Economic normative foundation......Page 64
Our understanding from a normative perspective......Page 65
Donaldson and Preston claim that:......Page 66
What is the purpose of the firm and its underlying principles of value creation?......Page 68
Who are the actors and who are the owners?......Page 70
What are the main attributes of actors and their behavior?......Page 71
What are the conditions of the environment?......Page 72
Stakeholder Capitalism......Page 73
Who are the actors and who are the owners?......Page 74
What are the main attributes of actors and their behavior?......Page 75
Final remarks......Page 76
What is the purpose of the firm and its underlying principles of value creation?......Page 77
Who are the actors and who are the owners?......Page 79
What are the main attributes of actors and their behavior?......Page 80
What are the conditions of the environment?......Page 82
The assumptions of different paradigms......Page 83
Part II Our understanding of the stakeholder paradigm and its operationalization......Page 91
The economic paradigm in an endless series of constraints......Page 93
The fundamental shift to mutuality in a network view......Page 94
License as entitlement......Page 96
Take another look at the Matterhorn......Page 98
The stakeholder network as resource pool......Page 102
Society as a contributor, not as a constraint......Page 103
Positioning and benchmarking......Page 105
Stakeholder licenses......Page 106
Common dimensions of the three licenses......Page 108
Contributions to value creation......Page 109
Firm and stakeholder strategies......Page 110
Evaluation of mutual value creation......Page 111
The content of the license to operate......Page 115
The cast of stakeholders: society as an end and value contributor, not as a constraint......Page 118
Corporation perspective......Page 122
Stakeholder perspective......Page 124
Important benefit and risk potentials from the perspective of the license to operate......Page 125
Value distribution to social and political stakeholders......Page 129
Strategies from the perspective of the license to operate......Page 130
Evaluation from the perspective of the license to operate......Page 131
Concluding remarks to the license to operate......Page 133
The content of the license to innovate......Page 134
Stakeholders as resource contributors......Page 135
Stakeholders as providers of non-limited resources......Page 138
Stakeholders as direct and indirect resource contributors......Page 140
Stakeholders as voluntary and involuntary resource contributors......Page 141
The motivation of stakeholders to contribute resources......Page 143
The dynamics of resource contribution......Page 145
Value distribution to stakeholders from the perspective of the license to innovate......Page 148
Strategy and core competencies from the perspective of the license to innovate......Page 149
Evaluation from the perspective of the license to innovate......Page 150
Concluding remarks to the license to innovate......Page 151
The nature of stakeholder networks......Page 153
The attractiveness of stakeholder networks......Page 155
Dynamics of stakeholder networks......Page 158
Forms of positioning......Page 159
Benefit and risk potentials in stakeholder networks......Page 160
Multiple roles of stakeholders......Page 161
Positioning on the continuum between cooperation and confrontation......Page 164
Value distribution to stakeholders from the perspective of the license to compete......Page 165
Generic strategies from the perspective of the license to compete......Page 167
Evaluation from the perspective of the license to compete......Page 169
Concluding remarks on the license to compete......Page 171
What are the main challenges for the required change?......Page 174
General principle of change......Page 175
Gradual change......Page 176
Fundamental changes......Page 177
Three basic learning processes......Page 178
Requirements in the perspective of the license to operate......Page 182
Requirements in the perspective of the license to compete......Page 183
Cultural impacts......Page 184
Different levels of culture......Page 185
Role of leaders......Page 187
Structures and processes of firms and stakeholders......Page 191
Distinctiveness and complexity of network structures......Page 192
Governance systems and legal impacts......Page 193
 Epilogue......Page 199
The researcher’s choice and responsibility......Page 201
Case study analysis......Page 202
In-depth studies33......Page 209
Desk research......Page 211
Glossary......Page 214
Notes......Page 221
Bibliography......Page 244
Index......Page 289