Stakeholder Theory and Supply Chains in the Circular Economy

Abstract

Recently, 181 CEOs of notable corporations signed a joint statement at the Business Roundtable (2019) on the “Purpose of a Corporation” – declaring its aim as the creation of benefits for “all stakeholders.” This will likely accelerate the circular economy transition process. Harmonizing the interests of various stakeholders is essential for managing successful organizations and supply chains, which is similar to the first principle of using natural ecosystem thinking. According to that principle, it is essential to strike a balance between the producers, consumers, scavengers, and decomposers. We draw on stakeholder theory to identify various challenges and risks that restrict businesses from building sustainable circular systems. We turn our attention toward increasing the numbers of “scavengers” and “decomposers” in the system for attaining sustainable growth. Our emphasis is on (1) empowering organizational life cycle stages, (2) designing for “decomposability” and “scavengers,” and (3) suggesting the use of advanced optimization models for harmonizing stakeholder relationships.

Citation

Shah, M.U. and Bookbinder, J.H. (2022), "Stakeholder Theory and Supply Chains in the Circular Economy", Bals, L., Tate, W.L. and Ellram, L.M. (Ed.) Circular Economy Supply Chains: From Chains to Systems, Emerald Publishing Limited, Leeds, pp. 129-148. https://doi.org/10.1108/978-1-83982-544-620221007