9 - Challenges resulting from a paradigm shift

Summary

In the course of this book, we have shown how different contributions in the research literature and empirical studies have stimulated our understanding of the stakeholder paradigm. We have also seen various aspects and examples of mutual value creation between firms and stakeholders that conform to this new paradigm, which we developed in more detail in Chapters 6 to 8. The questions remain how such a paradigm shift can occur within the present economic system, and what the main challenges of such a course might be. A vision for a strategy to achieve mutual value creation in society is required, and our aim is to contribute to it (see Chapter 1).

What are the main challenges for the required change?

We are aware that such a paradigm shift not only means changes for firms and stakeholders, but also impacts the economic system. Without doubt such changes and challenges will not only find support, therefore some hindering factors also need to be considered. The Wall Street Journal published a statement that emphasizes one such factor, namely a narrow economic view: “In the end, social responsibility is a financial calculation for executives, just like any other aspect of their business. The only sure way to influence corporate decision making is to impose an unacceptable cost – regulatory mandates, taxes, punitive fines, public embarrassment – on socially unacceptable behavior.”