Incorporating the Natural Environment in Corporate Strategy: A Stakeholder Approach

Abstract

Developing corporate strategies dealing with the natural environment requires that the organization take into consideration a number of internal and external stakeholders. Whilst most firms understand this need, most do not have a process for examining the relevant stakeholders and including them in the environmental strategy development process. This paper discusses how firms can use the stakeholder management process to identify important environmental stakeholders. It also discusses how firms can use an expanded version of the stakeholder strategy matrix to incorporate stakeholders into the environmental strategy development process. Utilizing these tools would allow firms to develop more effective strategies to deal with the natural environment, thus reducing their vulnerability to external shocks caused by "unsatisfied" stakeholders.