Eco-centric stakeholder theory

Purpose The purpose of this study is to introduce the eco-centric stakeholder theory (EST) as a unique and transformative framework that redefines stakeholder management by formally recognising the non-human natural environment as a legitimate stakeholder. This study aims to explore how EST addresses the conceptual gap in traditional models, shareholder theory and stakeholder theory, which prioritise profit or exclusively human stakeholders, despite nature’s critical role in organisational sustainability and its persistent under-representation in existing stakeholder frameworks. Design/methodology/approach This study uses a theory-building approach, synthesising philosophical reasoning, recognition theory and a structured literature review to develop EST. The framework bridges environmental ethics and strategic decision-making, integrates ecological accountability into corporate governance and offers a foundation for reorienting stewardship towards long-term sustainability. Findings This study reveals that EST redefines stakeholder legitimacy by formally recognising the non-human natural environment in corporate governance. It transcends anthropocentric constraints by prioritising ecological interdependence through tools such as environmental impact assessments, artificial intelligence (AI)-driven eco-innovation and biodiversity metrics. These mechanisms translate environmental ethics into actionable governance strategies, enhancing organisational resilience while aligning corporate practices with planetary boundaries. Originality/value To the best of the author’s knowledge, this study is the first to propose a framework formally embedding the non-human natural environment as a legitimate stakeholder. By integrating environmental ethics with AI and Internet of Things tools for ecological monitoring, EST shifts corporate governance from anthropocentric models to eco-centric accountability. It provides a scalable approach to align corporate strategy with planetary limits, advancing stakeholder legitimacy and sustainability-oriented governance.