The 100% owner of a business may in relatives terms own less because of stakeholders.
- managers have additional "owners" such as customers, and various others stakeholders. Often the manager wants to serve these stakeholders interest outside of profitability
- Typical Corporate Social Responsibility (CSR) doesn't involve customers, thus its often the bare minimum before customers will be interested in their products
- Market-focused sus. depends on relationship building with stakeholders
- Two theories have promise to explain sustainability efforts: Institutional theory and Systems theory
Institutional Theory: "attends to the deeper and more resilient aspects of social structure...it considers the process by which structures, including schemas, rules, norms, and routines, become established as authoritative guidelines for social behavior...it inquires into how these elements are created, diffused, adopted, and adapted over space and time; and how they fall into decline and disuse" scott 2005 p. 461-not one of our sources
Systems Theory: Basically the notion that all systems regardless of nature (social, ecological, biological, mechanical) is composed of multiple, interconnected elements. Systems theory seeks to understand the interdependence of organizations within its environmental and social system.
Hult, G. (2011). Market-focused sustainability: market orientation plus!. Journal Of The Academy Of Marketing Science,39(1), 1-6. doi:10.1007/s11747-010-0223-4
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