Mutuality and Concepts of Responsible Business
Chapter 6 places Economics of Mutuality in the context of a wider set of responsible business concepts, such as stakeholder theory. It considers whether these ideas represent fundamental ‘paradigm’ shifts in business or whether they are essentially modifications of existing theories It concludes that stakeholder theory was a significant shift away from shareholder-centric views of the firm, and, in line with stakeholder theory, Economics of Mutuality places corporate purposes other than shareholder value at the heart of the firm and derives business practices on the basis of that. But it differs from stakeholder theories in emphasizing the importance of relations with stakeholders in delivering corporate purposes not the interests of stakeholders themselves. It also differs from existing models in looking at the boundaries of the firm beyond traditional ownership rights and contractual arrangements. It is therefore a problem-solving view of the firm as against a financially or stakeholder-driven concept that embraces shareholders and stakeholders but does not put corporate purpose at the heart of either of them.