ABSTRACT
This chapter combines stakeholder theory and consumer theories to contribute to our understanding of the diverse types of value creation opportunities that are squandered when organisations act irresponsibly and affect stakeholders negatively. It is postulated that every action or inaction of the firm, be it responsible or irresponsible, is viewed by stakeholders as a form of direct or indirect communication. It is theorised that missing opportunities to embark on responsible and sustainable innovations constitutes value destruction – and that can lead to competitive disadvantage in the long run. A taxonomy of opportunities squandered when firms do not productively engage with stakeholders is delineated as: lost opportunity to offer value propositions; missed opportunity to co-create value; misappropriated opportunity to market share; stalled opportunity to attract investors and institutional support; closed opportunity to knowledge sharing via collaboration; alliances and new markets which facilitate new learning; and disruptive innovations with, through and for stakeholders.
