Sustainability game. (16th July 2021)

• Record Type: Journal Article
• Authors: Pedol, Miriam; Biffi, Elena; Melzi, Simone
• Other Names: Engle Robert guestEditor.; Brogi Marina guestEditor.; Cucari Nicola guestEditor.; Lagasio Valentina guestEditor.
• Is Part Of: Corporate social responsibility and environmental management. Volume 28:Number 5(2021)
• Page Start: 1540
• Page End: 1548
• Publication Date: 2021-07-16
• Subjects: games theory -- stakeholders -- sustainability -- sustainability game -- sustainable strategies; Environmental management -- Periodicals; Environmental auditing -- Periodicals; 658.408
• DOI: 10.1002/csr.2182
• Languages: English
• ISSNs: 1535-3958

Abstract

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.