Framewor
presentatio
,Stakeholder Theory
Paper: A stakeholder theory perspective on business models – Freudenreich
(2020)
Why traditional business mode
Core theoretical insights
fall short
Sees the firm as network of relationships. Traditional business model literature (e.g.
Stakeholder both affect and are affected by BMC) focuses entirely on the customer
the firm. value proposition and the financial
returns captured by the firm. However, thi
Core concepts view:
- Joint purpose: stakeholder work together • Treats stakeholder as either contributors
because the share a main goal (suppliers, employees) or recipients
(customers, shareholder)
- Mutual value exchange: stakeholder
• Assumes value flows one-way, from the
both contribute and receive value
firm outward
- Integration thesis: business and ethics • Ignores ecological, social ethical and
cannot be separated; ethical treatment of relational dimension of value
stakeholder affects value creation • Overlooks that stakeholders have their o
Implication nneeds, motives and definitions of value
Value creation becomes a multidirectional process
tied to relationships, motivation and shared goals.
In sustainability, this limitation becomes
critical because sustainability requires
collective action and alignment across
stakeholder groups.
,The Stakeholder Value Creation Framework
Paper: A stakeholder theory perspective on business models – Freudenreich
(2020)
Five stakeholder groups
1. Customers: they receive functional and 5. Investors, banks, creditors: contribute cap
symbolic value (product, identity, and governance pressure, receive returns, reduce
convenience). They also contribute by sharing long-term risk or portfolio diversification
data, participating in co-creation, giving
feedback or influencing design The Value Portfolio
Firms create a portfolio of diverse value typ
2. Business partners: includes supplies,
logistics, partners, R&D collaborators. They
• Economic (profit, wages, investments)
offer production inputs and expertise while • Social (community well-being, fair labour
receiving reliable contract, financial benefits, safety)
and reputational value • Ecological (reduced emissions, resource
regeneration
3. Employees: contribute skills labour, ideas
• Symbolic: identity, legitimacy, brand
and organisational knowledge. They receive
wages, development opportunities, stability, meaning)
and fair working conditions • Cultural or knowledge value
Implication
Different stakeholders value different mix
4. Societal stakeholders: communities, This framework shows how value is co-
NGOs, regulators, media and the natural created with and for five key stakeholder
environment. They expect transparency groups. Value is plural, not singular
responsible behaviour, reduced harm and
societal contributions
, The Stakeholder Value Creation Framework
Paper: A stakeholder theory perspective on business models – Freudenreich
(2020) Applying the framewotk to
4 Propositions for BMfS Business Models for
1. Stakeholder Engagement: all relevant Sustainability
stakeholders must be involved in identifying This is a model that:
and solving sustainability problems • Offers multiple value propositions to
multiple stakeholder groups
2. Joint Sustainability Purpose: the • Creates and delivers various types of valu
business model must be anchored in a • Economic
shared sustainability purpose which guides • Social
stakeholders’ contributions and aligns • Ecological
motivations
• Maintains or regenerates natural and soci
3. Aligning Stakeholder Interests: the capital
model must integrate ecological, social,
economic value so that stakeholders For a BMfS to work, stakeholder relationships
continue to support the firm must be structured around a sustainability
oriented joint purpose.
4. Integration of Ethics: ethics and business
must be considered together. Respecting,
listening to and collaborating ethically with
stakeholders strengthens value creation and
long-term legitimacy
presentatio
,Stakeholder Theory
Paper: A stakeholder theory perspective on business models – Freudenreich
(2020)
Why traditional business mode
Core theoretical insights
fall short
Sees the firm as network of relationships. Traditional business model literature (e.g.
Stakeholder both affect and are affected by BMC) focuses entirely on the customer
the firm. value proposition and the financial
returns captured by the firm. However, thi
Core concepts view:
- Joint purpose: stakeholder work together • Treats stakeholder as either contributors
because the share a main goal (suppliers, employees) or recipients
(customers, shareholder)
- Mutual value exchange: stakeholder
• Assumes value flows one-way, from the
both contribute and receive value
firm outward
- Integration thesis: business and ethics • Ignores ecological, social ethical and
cannot be separated; ethical treatment of relational dimension of value
stakeholder affects value creation • Overlooks that stakeholders have their o
Implication nneeds, motives and definitions of value
Value creation becomes a multidirectional process
tied to relationships, motivation and shared goals.
In sustainability, this limitation becomes
critical because sustainability requires
collective action and alignment across
stakeholder groups.
,The Stakeholder Value Creation Framework
Paper: A stakeholder theory perspective on business models – Freudenreich
(2020)
Five stakeholder groups
1. Customers: they receive functional and 5. Investors, banks, creditors: contribute cap
symbolic value (product, identity, and governance pressure, receive returns, reduce
convenience). They also contribute by sharing long-term risk or portfolio diversification
data, participating in co-creation, giving
feedback or influencing design The Value Portfolio
Firms create a portfolio of diverse value typ
2. Business partners: includes supplies,
logistics, partners, R&D collaborators. They
• Economic (profit, wages, investments)
offer production inputs and expertise while • Social (community well-being, fair labour
receiving reliable contract, financial benefits, safety)
and reputational value • Ecological (reduced emissions, resource
regeneration
3. Employees: contribute skills labour, ideas
• Symbolic: identity, legitimacy, brand
and organisational knowledge. They receive
wages, development opportunities, stability, meaning)
and fair working conditions • Cultural or knowledge value
Implication
Different stakeholders value different mix
4. Societal stakeholders: communities, This framework shows how value is co-
NGOs, regulators, media and the natural created with and for five key stakeholder
environment. They expect transparency groups. Value is plural, not singular
responsible behaviour, reduced harm and
societal contributions
, The Stakeholder Value Creation Framework
Paper: A stakeholder theory perspective on business models – Freudenreich
(2020) Applying the framewotk to
4 Propositions for BMfS Business Models for
1. Stakeholder Engagement: all relevant Sustainability
stakeholders must be involved in identifying This is a model that:
and solving sustainability problems • Offers multiple value propositions to
multiple stakeholder groups
2. Joint Sustainability Purpose: the • Creates and delivers various types of valu
business model must be anchored in a • Economic
shared sustainability purpose which guides • Social
stakeholders’ contributions and aligns • Ecological
motivations
• Maintains or regenerates natural and soci
3. Aligning Stakeholder Interests: the capital
model must integrate ecological, social,
economic value so that stakeholders For a BMfS to work, stakeholder relationships
continue to support the firm must be structured around a sustainability
oriented joint purpose.
4. Integration of Ethics: ethics and business
must be considered together. Respecting,
listening to and collaborating ethically with
stakeholders strengthens value creation and
long-term legitimacy
