Mechanism of Sustainability and Structure of Stakeholders in Regions
Abstract
Global market and government failures might be possible to cause great crises for the global communities. To prevent the great crises global communities attempt to construct the sustainable mechanisms with integrated communication and incentives. This paper discusses that the second best solution of the sustainable mechanism can be achieved by employing the two indexes of the altruistic and risk coefficients. It is also demonstrated that the sustainable mechanism improves social welfare but affects differently performances of corporations. The corporations have the two types of stakeholders referred as positive and negative stakeholders according to the positive or negative information in their external benefits. The combination of the two stakeholders is formed by the feature of the corporation. The sustainability mechanism is proved to encourage activities in the positive stakeholder dominated corporation but to lower productions in the negative stakeholder dominated corporation. Consequently, the sustainability mechanism raises the communities to be connected with many positive stakeholder dominated corporations but shrink the communities formed by influential corporations with dominant negative stakeholders. The new industrial revolution is anticipated to change the structure of the stakeholders. In particular, the sustainability mechanism to cope with the new industrial revolution is expected to grow selectively regions.References
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