BALANCING THE DOUGHNUT: A NEW PARADIGM FOR SUSTAINABLE BUSINESS PRACTICES THROUGH STAKEHOLDER ENGAGEMENT
##plugins.themes.bootstrap3.article.main##
##plugins.themes.bootstrap3.article.sidebar##
Abstract
This study explores the integration of Doughnut Economics with Stakeholder Theory and Legitimacy Theory to create a sustainable business framework. The primary objective is to demonstrate how this hybrid model can facilitate corporate social responsibility (CSR) and corporate governance (CG) practices that align with both social needs and ecological limits. Utilizing qualitative case analysis, the research examines best practices from companies such as Patagonia and Interface. Patagonia’s commitment to ethical sourcing and community welfare illustrates how businesses can meet the expectations of multiple stakeholders, while Interface’s transformation towards sustainability highlights a practical application of the doughnut model. Methodologically, this study employs a mixed-methods approach, combining theoretical analysis with real-world case studies. The research first outlines the foundational concepts of Doughnut Economics, which juxtaposes humanity’s social foundation against planetary boundaries. It then intertwines this conceptual model with Stakeholder Theory, which emphasizes a corporation's role in addressing the needs of various stakeholders beyond mere profit generation. Furthermore, Legitimacy Theory is introduced to assert that a company’s visibility and long-term viability depend on its ability to harmonize stakeholder expectations with ethical practices. The findings reveal a compelling case for integrating these frameworks to foster systemic change in business operations. Both case studies demonstrate that companies not only enhanced their reputations through proactive stakeholder engagement but also achieved significant financial benefits, thereby proving that sustainable practices can result in economic viability. In conclusion, this research suggests that embedding the principles of Doughnut Economics into CSR and CG frameworks enables organizations to address pressing social and environmental issues while creating long-term shareholder value. By encouraging firms to prioritize ethical sourcing, diversity, and responsible governance, this paradigm shift paves the way for a more equitable and sustainable business landscape.
How to Cite
##plugins.themes.bootstrap3.article.details##
Doughnut Economics, sustainable business practices, Stakeholder Theory, Legitimacy Theory, corporate social responsibility (CSR), corporate governance (CG), ethical sourcing, Patagonia, Interface, environmental sustainability, social equity, systemic change, long-term impact
Aguilera, R. V., Rupp, D., & Ganapathi, J. (2004). Putting the S Back in Corporate Social Responsibility: A Multi-Level Theory of Social Change in Organizations. Business, Corporate Law: Law & Finance. Available at: https://www.semanticscholar.org/paper/Putting-the-S-Back-in-Corporate-Social-a-Theory-of-Aguilera-Rupp/4b9bfb0abb36b343e23ad35fb7fd1443d052d43b
Carroll, A. (1979). A three-dimensional conceptual model of social performance. Academy of Management Review, 4, 497–505. Available at: https://www.researchgate.net/publication/230745468_A_ThreeDimensional_Conceptual_Model_of_Social_Performance
Chief Sustainability Officer, Smurfit Kappa (2024). Patagonia’s focus on its people is helping it to make tough decisions as it pursues sustainability. Smurfit Kappa. Available at: https://www.smurfitkappa.com/sustainability/survey/articles/howpatagonia-is-embodying-a-new-kind-of-corporate-sustainability
Davis, K. (1967). Understanding the Social Responsibility Puzzle. Business Horizons, 10, 45–50. Available at: https://www.scirp.org/reference/ReferencesPapers?ReferenceID=1742737
Davis, K. (1973). The case for and against business assumption of social responsibilities. Available at: http://57ef850e78feaed47e423eada556f2c82b951c467be415f62411.r9.cf2.rackcdn.com/Davis-1973-ForAnd%20Against.pdf
Deakin, S. & Hobbs, R. (2007). False dawn for CSR? Shifts in regulatory policy and the response of the corporate and financial sectors in Britain. Corporate Governance: An International Review, 15: 68–76. Available at: https://www.researchgate.net/publication/4745960_False_Dawn_for_CSR_Shifts_in_Regulatory_Policy_and_the_Response_of_the_Corporate_and_Financial_Sectors_in_Britain
Ganti, A. (2024, March 6). Social Responsibility in Business: Meaning, Types, Examples, and Criticism. Investopedia. Reviewed by Anderson, S. Fact checked by Velasquez, V. Available at: https://www.investopedia.com/terms/s/socialresponsibility.asp
Economy World Research Center WBCSD (World Business Council for Sustainable Development) (2002). The Business Case for Sustainable Development: Making a Difference toward the Johannesburg Summit 2002 and Beyond, WBCSD, Switzerland. Available at: https://www.researchgate.net/publication/283397928_The_Business_Case_for_Sustainable_Development_Making_a_Difference_towards_the_Earth_Summit_2002_and_Beyond
Engage for Good (2016). Social Impact Statistics You Should Know. Engage for Good. Available at: https://engageforgood.com/guides/statistics-every-cause-marketer-shouldknow/
Friedman, M. (1970). A Friedman doctrine‐ The Social Responsibility of Business Is to Increase Its Profits. The New York Times. Available at: https://www.nytimes.com/1970/09/13/archives/afriedman-doctrine-the-social-responsibility-of-business-is-to.html
Freeman, R. E., Wicks, A. C. & Parmar, B. (2004). Stakeholder Theory and The Corporate Objective Revisited. Organization Science, 15(3), pp. 364–369. Available at: https://www.researchgate.net/publication/262286829_Stakeholder_Theory_and_The_Corporate_Objective_Revisited
Faire. (2023, April 19). Trendspotting: Demand for sustainable products shows no signs of slowing. Faire Learning Hub. Available at: https://blog.faire.com/industry-insights/sustainable-producttrends/#:~:text=Today%2C%20interest%20in%20eco%2Dfriendly
Guthrie, J. and Parker, L.D. (1989). Corporate Social Reporting: A Rebuttal of Legitimacy Theory. Accounting and Business Research, 19, 343–352. DOI: http://dx.doi.org/10.1080/00014788.1989.9728863
Interface Inc. (2020). Case Study: Interface. Available at: https://thenaturalstep.org/project/interface/
Jensen, M. C. (2002). Value Maximization, Stakeholder Theory, and the Corporate Objective Function. Business Ethics Quarterly, 12(2), 235–256. DOI: https://doi.org/10.2307/3857812
Jamali, D. (2006). Insights into triple bottom line integration from a learning organization perspective. Business Process Management Journal, 12: 809–21. Available at: https://www.researchgate.net/publication/235252674_Insights_into_triple_bottom_line_integration_from_a_learning_organization_perspective
Khoo, J. (2022). Interviewing Jon Khoo, Head of Sustainability (EAAA) at Interface. [online] Eco Intelligent Growth. Available at: https://ecointelligentgrowth.net/interface-inspiring-spaces/
Kadyan, J. S. (2016). United Nations Global Compact and Corporate Social Responsibility. International Journal of Science and Research (IJSR), 5(10). Available at: https://www.researchgate.net/profile/Jagbir-Kadyan/publication/315885078_United_Nations_Global_Compact_and_Corporate_Social_Responsibility/links/58ec561d4585153b60c988bc/United-Nations-Global-Compact-and-Corporate-Social-Responsibility.pdf
Lantos, G. (2001). The boundaries of strategic corporate social responsibility. Journal of Consumer Marketing, 18, 595–630. Available at: https://www.researchgate.net/publication/230745480_The_Boundaries_of_Strategic_Corporate_Social_Responsibility_Journal_of_Consumer_Marketing_18_595-630
Munilla, L. S. & Miles, M. P. (2005). The corporate social responsibility continuum as a component of stakeholder theory. Business and Society Review, 110: 371–387. Available at: https://www.researchgate.net/publication/228016242_The_Corporate_Social_Responsibility_Continuum_as_a_Component_of_Stakeholder_Theory
Marsiglia, E. & Falautano, I. (2005). Corporate social responsibility and sustainability challenges for a Bancassurance Company. The Geneva Papers, 30: 485–497. Available at: https://www.researchgate.net/publication/5221775_Corporate_Social_Responsibility_and_Sustainability_Challenges_for_a_Bancassurance_Company
Pereira, D. (2023, April 17). Is Patagonia Profitable? The Business Model Analyst. Available at: https://businessmodelanalyst.com/is-patagoniaprofitable/
Patagonia, Inc. (2024). Available at: https://www.patagonia.com/home/
Patagonia, Inc. (2024). _Worn Wear_. Available at: https://wornwear.patagonia.com
Raworth, K. (2018). Doughnut Economics: Seven Ways to Think Like a 21st-Century Economist. 1st edition. London: Random House Business.
Ross, F. (2020). Kate Raworth – Doughnut Economics: Seven Ways to Think Like a 21st Century Economist (2017). Regional and Business Studies, 11(2). DOI: https://doi.org/10.33568/rbs.2409. Presented at ICSEA Conference. HFH Hamburger Fern-Hochschule. Available at: https://www.researchgate.net/publication/340685996_Kate_Raworth__Doughnut_Economics_Seven_Ways_to_Think_Like_a_21st_Century_Economist_2017
Semuels, A. (2019, September 23). “Rampant Consumerism Is Not Attractive.” Patagonia Is Climbing to the Top — and Reimagining Capitalism Along the Way. Time. Available at: https://time.com/5684011/patagonia/
Sapru, R., & Schuchard, R. (2011). CSR and Quality: A Powerful and Untapped Connection. BSR. Available at: https://www.bsr.org/reports/BSR_ASQ_CSR_and_Quality.final.pdf
Torelli, R. (2020). Sustainability, responsibility and ethics: different concepts for a single path. Social Responsibility Journal. Published 13 July 2020. Università Cattolica del Sacro Cuore, Department of Economic and Social Sciences, Piacenza, Italy. Available at: https://www.emerald.com/insight/content/doi/10.1108/SRJ-03-20200081/full/pdf?title=sustainability-responsibility-and-ethics-differentconcepts-for-a-single-path
ZunoCarbon. (2024, April 18). Navigating sustainability: lessons from Patagonia's supply chain. Available at: https://www.zunocarbon.com/blog/patagonia-supply-chain
This work is licensed under a Creative Commons Attribution 4.0 International License.