The Natural Environment as Stakeholder: An Exploration of Sustainable Value Creation

Abstract

In this paper, I argue that an integration of insights from instrumental stakeholder theory with research on corporate sustainability can reveal new value creation opportunities. Specifically, I suggest that a firm’s ability to view the natural environment itself as a stakeholder can form a foundation upon which to strengthen the relationship between sustainable business practices and improved economic performance. I further argue that factors such as a firm’s product market strategy and characteristics of the competitive environment impact the means by which firms may create value through their sustainability efforts.