BALANCING THE DOUGHNUT: A NEW PARADIGM FOR SUSTAINABLE BUSINESS PRACTICES THROUGH STAKEHOLDER ENGAGEMENT

This study explores the integration of Doughnut Economics with Stakeholder Theory and Legitimacy Theory to create a sustainable business framework. The primary objective is to demonstrate how this hybrid model can facilitate corporate social responsibility (CSR) and corporate governance (CG) practices that align with both social needs and ecological limits. Utilizing qualitative case analysis, the research examines best practices from companies such as Patagonia and Interface. Patagonia’s commitment to ethical sourcing and community welfare illustrates how businesses can meet the expectations of multiple stakeholders, while Interface’s transformation towards sustainability highlights a practical application of the doughnut model. Methodologically, this study employs a mixed-methods approach, combining theoretical analysis with real-world case studies. The research first outlines the foundational concepts of Doughnut Economics, which juxtaposes humanity’s social foundation against planetary boundaries. It then intertwines this conceptual model with Stakeholder Theory, which emphasizes a corporation's role in addressing the needs of various stakeholders beyond mere profit generation. Furthermore, Legitimacy Theory is introduced to assert that a company’s visibility and long-term viability depend on its ability to harmonize stakeholder expectations with ethical practices. The findings reveal a compelling case for integrating these frameworks to foster systemic change in business operations. Both case studies demonstrate that companies not only enhanced their reputations through proactive stakeholder engagement but also achieved significant financial benefits, thereby proving that sustainable practices can result in economic viability. In conclusion, this research suggests that embedding the principles of Doughnut Economics into CSR and CG frameworks enables organizations to address pressing social and environmental issues while creating long-term shareholder value. By encouraging firms to prioritize ethical sourcing, diversity, and responsible governance, this paradigm shift paves the way for a more equitable and sustainable business landscape.