Synthetic stakeholders: engaging the environment in organizational decision-making

Abstract

Stakeholder theory suggests an array of different human actors-from individuals to collectives with various concerns-need to be considered in organizational decision-making. Yet recent advancements in agentic technologies, including artificial intelligence (AI), machine learning algorithms (ML), and distributed ledger technologies (DLTs), promise to disrupt this human-only affair. Critically, these technologies possess the agency to intentionally constrain, complement, or substitute for human action. As such, we frame these technologies as the basis of a potent new type of stakeholder: synthetic stakeholders. A synthetic stakeholder is a technology-based agent(s) that can learn and act as an independent representative in organizational decision-making processes. In this paper, we theorize the bounds of synthetic shareholders and address how they can engage in organizational decision-making. This research shows how often disregarded stakeholders, such as the natural environment, can gain a powerful and independent “voice” in organizational decision-making (Geisel, 1971).