This paper describes a dynamic multistage game in which sustainability is a value that is shared between companies and stakeholders in a competitive market. The game solution could move from a Nash equilibrium to a higher equilibrium, the MES equilibrium, because of the presence of stakeholders who influence the choice and the set of sustainable strategies. Stakeholders provide feedback to companies (by way of awards, ratings, rankings, rebukes, etc.) at every stage of the game. Positive feedback gives a company the chance to expand its business opportunities, leveraging on good reputation, customer loyalty, operational risk mitigation, resilience, employees' cohesion, etc. The interaction between companies and stakeholders also allows companies to seize market opportunities (e.g., supplying sustainable products for responsible customers, sustainable investments for investors, etc.). The sustainability game demonstrates how sustainability can engage the economic system in a market shift.

Pedol, M., Biffi, E., Melzi, S. (2021). Sustainability game. CORPORATE SOCIAL RESPONSIBILITY & ENVIRONMENTAL MANAGEMENT, 28(5), 1540-1548 [10.1002/csr.2182].

Sustainability game

Melzi S.
2021

Abstract

This paper describes a dynamic multistage game in which sustainability is a value that is shared between companies and stakeholders in a competitive market. The game solution could move from a Nash equilibrium to a higher equilibrium, the MES equilibrium, because of the presence of stakeholders who influence the choice and the set of sustainable strategies. Stakeholders provide feedback to companies (by way of awards, ratings, rankings, rebukes, etc.) at every stage of the game. Positive feedback gives a company the chance to expand its business opportunities, leveraging on good reputation, customer loyalty, operational risk mitigation, resilience, employees' cohesion, etc. The interaction between companies and stakeholders also allows companies to seize market opportunities (e.g., supplying sustainable products for responsible customers, sustainable investments for investors, etc.). The sustainability game demonstrates how sustainability can engage the economic system in a market shift.
Articolo in rivista - Articolo scientifico
games theory; stakeholders; sustainability; sustainability game; sustainable strategies;
English
2021
28
5
1540
1548
none
Pedol, M., Biffi, E., Melzi, S. (2021). Sustainability game. CORPORATE SOCIAL RESPONSIBILITY & ENVIRONMENTAL MANAGEMENT, 28(5), 1540-1548 [10.1002/csr.2182].
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10281/350542
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