In the face of intractable societal grand challenges, organizations increasingly resort to responsible innovation—that is, they pledge to create value for multiple stakeholders through developing new products or services that avoid doing harm and improve conditions for people and the planet, write Sophie Bacq and Ruth V. Aguilera on their recent paper.
This paper advances a novel theoretical framework that contributes to understanding how organisations engaged in responsible innovation allocate value among their set of intended stakeholders. The proposed framework of stakeholder governance is comprised of four novel mechanisms by which organizations can allocate value among their multiple principal stakeholders. These mechanisms are deployed to channel the responsible innovations of the organisations towards addressing societal grand challenges. This paper also provides insight on the multifaced issues associated with the allocation of economic and social value among multiple principal stakeholders through deliberative democratic processes. Overall, this study contributes to responsible innovation and corporate governance.
Read the full paper here