Sustainability, Stakeholder Perspective and Corporate Success: A Paradigm Shift

In this paper, I argue that the corporation can ‘do well by doing good’ in the long run if they take the stakeholder perspective. Corporations narrowly focused on short-term profits, can make business decisions that could be detrimental to long-run sustainability. For example, firms might not be making enough investments in Research and Development, producing potentially harmful products, and might not pay enough attention to their corporate image. The stakeholder perspective promotes ethical business decision-making and focuses on long-run sustainability by emphasizing a stable customer base, employee well-being, a better corporate image, and corporate social responsibility. Ethical decision-making includes a fair and equitable distribution of corporate profits, empowering business decisions and stabilizing employment. In a new and contemporary economy, the stakeholder perspective provides a better view of managing corporations by promoting long run focused, ethical decision-making and by paying attention to “common good”. This will ultimately help in improving profitability and long-run sustainabilit