Alan Kirker

Stakeholder

November 30th, 2020 by

The definition of a stakeholder in the corporate sense is “a member of groups without whose support the organization would cease to exist” (Wikipedia, retrieved November 2020, after Freeman, 1980). In this realm, stakeholders can include owners, managers, employees, trade unions, customers, shareholders, supply chains, and the communities related to or surrounding such structures, among others. If we extend such a perspective across society, it sees individuals, regardless of specific affiliation, as having a vested interest and the agency to act in many different aspects of their day-to-day lives. Communities, unions, school districts, religious and volunteer organizations, sports and athletic clubs, local and national politics, and the many other networks radiating out from each of these provide examples of different pools of stakeholders.

Does the concept of “citizen” in the political sense adequately embody our collective societal roles? Does something about the term “stakeholder” imply a responsibility, reciprocity, or an exchange of some sort of value? Stakeholder Theory looks at this notion from a wider, ethical perspective: “It addresses morals and values in managing an organization, such as those related to corporate social responsibility, market economy, and social contract theory” (Wikipedia, retrieved November 2020). Stakeholder engagement “is the process by which an organization involves people who may be affected by the decisions it makes or can influence the implementation of its decisions. They may support or oppose the decisions, be influential in the organization or within the community in which it operates, hold relevant official positions or be affected in the long term” (Wikipedia, retrieved November 2020).

Could a stakeholder perspective be adopted by different facets of society? How might people become engaged in the larger social spheres, beyond the ballot or suggestion box? In the business world, academic Michael Porter proposes moving beyond social responsibility to the idea of Creating Shared Value whose central premise “is that the competitiveness of a company and the health of the communities around it are mutually dependent (Wikipedia, retrieved November 2020).

“The principle of shared value creation cuts across the traditional divide between the responsibilities of business and those of government or civil society. From society’s perspective, it does not matter what types of organizations created the value. What matters is that benefits are delivered by those organizations – or combinations of organizations – that are best positioned to achieve the most impact for the least cost”, and thus create “a positive cycle of company and community prosperity” (2011, p. 12).

Shared value creation underscores the relevance of the third, social, balancing leg of sustainability practice. Given the increasing role that technology plays in our lives, has surveillance capitalism sidestepped all opportunity for social responsibility and shared value creation in treating us not as stakeholders in any grander social vision, but rather as taunted data points in some massive marketing miasma? Professor and Director of the Citizen Lab Ronald Deibert makes the case for a reset of the internet and a rethink from first principles (2020).

Does the notion of value more generally warrant scrutiny in light of the apparent increasingly and often unpredictably shifting nature of our present day socioeconomic landscape? Do the things we have come to attach value to, for instance social status and material wealth, really matter? Do they provide genuine happiness and peace? Moreover, how can we articulate and reconcile our values as a society, and as member nations of a planet, so that we can best face the challenges, both exciting and daunting, that undoubtedly lie ahead?


Ayed, N., & Deibert, R. (2020, November 16). Reset. Ideas @ CBC Radio [mp3 audio interview] retrieved from https://www.cbc.ca/radio/ideas/what-happened-to-the-promise-of-the-internet-it-s-time-for-a-reset-says-ron-deibert-1.5801268

Kramer, M., & Porter, M. (2011) Creating Shared Value. Harvard Business Review, January-February (pp. 1-18)

Sustainability

November 24th, 2020 by

The broadest definition of sustainability is “the ability to exist constantly”. Nowadays, despite its buzzword-popularity, “refers generally to the capacity for the biosphere and human civilization to co-exist” (Wikipedia, retrieved November 2020). One important notion regarding sustainability is that of the “commons” in the environmental sense; the air, the water, the lands that we all share or have access to and depend on, but by their nature as intrinsically essential often exist apart from our spatial and temporal boundaries, and tragically apart from our priorities.

In nineteen sixty-two biologist Rachel Carson’s landmark book “Silent Spring“, whose title alludes to a nature without the sounds of birds or insects, threw a spotlight on the effect of chemical pesticides upon the landscape and effectively launched the modern environmental movement. Carson ascribed the problem underlying our perilous course as a desire to “control nature”… “a phrase conceived in arrogance, born of the Neanderthal age of biology and philosophy, when it was supposed that nature exists for the convenience of man” (1962, p. 297).

Formalizing this movement began several decades later with the publishing of Our Common Future: The United Nations Report of the World Commission on Environment and Development, or Bruntland Report, in 1987. This document established a framework which defined sustainable development as that which“meets present needs without compromising the ability of future generations to meet theirs” and thus sought to move environmental practices beyond the regulatory compliance of the seventies, the anticipatory cost-avoiding measures undertaken in the eighties, through proactive measures such as eco-efficiency and strategic environmental management in the nineties, to what is regarded as the mainstreaming and integration of sustainability practices overall into the new millennium. The report presents “not a detailed blueprint for action, but instead a pathway by which the peoples of the world may enlarge their spheres of cooperation” (1987, p. 11).

Despite strong public awareness about the topic of sustainability, some sectors within modern society have been accused of greenwashing, “a form of marketing spin in which green PR (green values) and green marketing are deceptively used to persuade the public that an organization’s products, aims and policies are environmentally friendly” (Wikipedia, retrieved November 2020). Increasingly, goals, frameworks, and standards are required to help shepherd sustainable development forward, insofar as these sorts of instruments are supported by policymakers. The key lever currently needed to effect meaningful environmental change, according to most scientists and economists, is for nations to broadly implement a carbon tax.  Thanks for this reminder, Elon 🙂  [JRE #1609]

Critical too in this broader context is the challenge of assigning a value to both finite and renewable resources which form the planet’s natural capital and that often also provide essential ecosystem services. Can technology and innovation play a role in the vast accounting necessary to adequately undertake such initiatives? Moreover, do large, governing bodies such as the United Nations not now have a more crucial role than ever in uniting the peoples of the world in order to face such global challenges?

Top-down regulation and guidelines must also serve to augment and incentivize necessary bottom-up approaches to a circular economy. Critical to sustainable developments themselves is an understanding the wider, often complex spheres into which they fit. For example, its possible that many millions of solar panels will reach the end of their lifespans over the coming years. Could industrial ecology and material efficiency strategies such as the industrial symbiosis of their manufacture and the “loop-closing” reverse logistics of their recycling, be factored in to their design, development, and deployment? Does manufacturing sufficiently capitalize on these and other progressive environmental practices? As echoed in Carson’s commentary about modern society, we live in an “era of specialists, each of whom sees his own problem and is unaware of or intolerant of the larger frame into which it fits” (1962, p. 13).

Sustainable development as a practice applied to various broad sectors of society might be viewed as three legs supporting a table. An economic one relates to issues of growth, sufficiency, and stability; an environmental one includes issues of resilience, resource use, and pollution; and a third, social one, sees people as stakeholders; clients, employees, members of the local community, broader markets, supply chains, populations, to name but a few, and all of their related interactions. How must these three legs balance so society can truly progress sustainably?


Carson, R. (1962) Silent Spring. New York, United States: Mariner Books – Houghton Mifflin (2002 ed).

Green Growth Knowledge Platform (N.D.) United Nations, Green Growth Knowledge Partnership [website]. Retrieved April 2021

One Planet Network (N.D.) United Nations, One Planet Network [website]. Retrieved April 2021

Our Common Future: Report of the World Commission on Environment and Development (1987) [PDF document]. Retrieved from the United Nations website

United Nations Environment Programme (N.D.) United Nations [website]. Retrieved April 2021

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