Lecture 1: Stakeholders and Systems
Stakeholders: an individual or group that, in context of specific situations, is either
harmed by or benefits from, the corporation, or whose rights the corporation should
respect
o Stakeholder theory expanded traditional views of the firm
Firm: shareholders, customers, suppliers, customers
government, competitors, civil society, employees
o Why stakeholders matter:
Recognition of interdependence of business and society
Social license to operate – leading to management of risk and
opportunity
Ethical responsibilities to other species and future generations (from the
definitions of sustainability)
Understanding who the stakeholders are can identify the important
actions for company to take
o Adding complexity
Stakeholders’ interests – not necessarily aligned – how do we prioritize or
make trade-offs?
Classically prioritize based on power, legitimacy, urgency – but
does this give the right answers?
Difficult to form relationships b/w company and stakeholders
Different values/points of view (ex. Nestle and Greenpeace)
Different broader agendas (ex. Google and climate change
deniers)
Allocation of time/resources and co-ordination activities
Anxiety about greenwashing
Companies may ‘cherry pick’ stakeholders to work w/, rather than
tacking systemic issues in their industry
o Big implications for companies:
Which stakeholders do we privilege?
Are there win/wins?
How do we decide about trade-offs?
What do we do when stakeholders’ interests are in direct contradiction?
How do we understand relationships b/w stakeholders? Or stakeholders
w/ multiple roles?
How can we work w/ stakeholders to achieve real change?
o Company example: Danone:
100 year history of dairy/food products
Very active in CSR
Use ideas we have already discussed – ex. Materiality matrix to prioritize
action
Also connect their actions to several of the Sustainable Development
Goals
Portfolio of brands in 3 categories:
, Dairy/plant-based brands: ex. Danone, Activia, Alrpo, Actimel
Bottled water: ex. Evian, Volvic and several national brands
Specialist nutrition: ex. Baby formula, medical nutrition (ex. For
use in hospitals)
Mission: ‘bringing health through food to as many people as possible’
o Food, sustainability and ethics
Many trends respond to: health and obesity/farming and agriculture /
food waste/ conditions in supply chains/energy and water use/ ethical
concerns about meat/food safety + hygiene / local production +
consumption
what is Danone’s role in the Food Revolution?
o Danone’s ‘ecosystem’ of stakeholders
Trade unionists, communities, farmers, consumers,
employees, suppliers, shareholders, researchers,
foodtech/entrepreneurs, retailers/business
partners
o Systems, sustainability and ethics
One of the reasons problems of sustainability and ethics can be
intractable is that they involve complex, interrelated issues
Ecologists have long tradition of examining ecosystems – the relationship
b/w elements of natural environment
This approach to mapping or modelling a system has been very influential
in thinking about environmental and economic sustainability – starting w/
‘Silent Spring’ and ‘Limits to Growth’
It can help us identify critical points for intervention or innovation in
systems, and prioritize work w/ stakeholders around these
Warning: systems theory is complicated – you won’t be expected
to be able to do this
o Systems have particular characteristics
Processes – stocks and flows – feedback loops which can either hold the
system in balance of cause it to escalate – tipping points (at which the
system may change)
o Tacking hunger: how Danone intervenes in food system:
Working w/ farmers to improve production system
Working w/ scientists to improve food technology
Working w/ foodtech entrepreneurs to respond to changing demands
Working w/ local communities – particularly on female empowerment
Reducing waste – esp. water and plastic
o The SDGs are latest in a series of international goals
1970: ‘Limit of Growth’ – UN Conference on the Human Environment
1980: Brundtland report defines sustainable development (1987)
Montreal protocol addresses depletion of the ozone layer (1987)
Stakeholders: an individual or group that, in context of specific situations, is either
harmed by or benefits from, the corporation, or whose rights the corporation should
respect
o Stakeholder theory expanded traditional views of the firm
Firm: shareholders, customers, suppliers, customers
government, competitors, civil society, employees
o Why stakeholders matter:
Recognition of interdependence of business and society
Social license to operate – leading to management of risk and
opportunity
Ethical responsibilities to other species and future generations (from the
definitions of sustainability)
Understanding who the stakeholders are can identify the important
actions for company to take
o Adding complexity
Stakeholders’ interests – not necessarily aligned – how do we prioritize or
make trade-offs?
Classically prioritize based on power, legitimacy, urgency – but
does this give the right answers?
Difficult to form relationships b/w company and stakeholders
Different values/points of view (ex. Nestle and Greenpeace)
Different broader agendas (ex. Google and climate change
deniers)
Allocation of time/resources and co-ordination activities
Anxiety about greenwashing
Companies may ‘cherry pick’ stakeholders to work w/, rather than
tacking systemic issues in their industry
o Big implications for companies:
Which stakeholders do we privilege?
Are there win/wins?
How do we decide about trade-offs?
What do we do when stakeholders’ interests are in direct contradiction?
How do we understand relationships b/w stakeholders? Or stakeholders
w/ multiple roles?
How can we work w/ stakeholders to achieve real change?
o Company example: Danone:
100 year history of dairy/food products
Very active in CSR
Use ideas we have already discussed – ex. Materiality matrix to prioritize
action
Also connect their actions to several of the Sustainable Development
Goals
Portfolio of brands in 3 categories:
, Dairy/plant-based brands: ex. Danone, Activia, Alrpo, Actimel
Bottled water: ex. Evian, Volvic and several national brands
Specialist nutrition: ex. Baby formula, medical nutrition (ex. For
use in hospitals)
Mission: ‘bringing health through food to as many people as possible’
o Food, sustainability and ethics
Many trends respond to: health and obesity/farming and agriculture /
food waste/ conditions in supply chains/energy and water use/ ethical
concerns about meat/food safety + hygiene / local production +
consumption
what is Danone’s role in the Food Revolution?
o Danone’s ‘ecosystem’ of stakeholders
Trade unionists, communities, farmers, consumers,
employees, suppliers, shareholders, researchers,
foodtech/entrepreneurs, retailers/business
partners
o Systems, sustainability and ethics
One of the reasons problems of sustainability and ethics can be
intractable is that they involve complex, interrelated issues
Ecologists have long tradition of examining ecosystems – the relationship
b/w elements of natural environment
This approach to mapping or modelling a system has been very influential
in thinking about environmental and economic sustainability – starting w/
‘Silent Spring’ and ‘Limits to Growth’
It can help us identify critical points for intervention or innovation in
systems, and prioritize work w/ stakeholders around these
Warning: systems theory is complicated – you won’t be expected
to be able to do this
o Systems have particular characteristics
Processes – stocks and flows – feedback loops which can either hold the
system in balance of cause it to escalate – tipping points (at which the
system may change)
o Tacking hunger: how Danone intervenes in food system:
Working w/ farmers to improve production system
Working w/ scientists to improve food technology
Working w/ foodtech entrepreneurs to respond to changing demands
Working w/ local communities – particularly on female empowerment
Reducing waste – esp. water and plastic
o The SDGs are latest in a series of international goals
1970: ‘Limit of Growth’ – UN Conference on the Human Environment
1980: Brundtland report defines sustainable development (1987)
Montreal protocol addresses depletion of the ozone layer (1987)
