The virtuous cycle of stakeholder engagement in developing a sustainability culture: Salcheto winery

Stakeholder engagement in sustainability represents a powerful driver for value creation. Drawing from stakeholder theory, this paper explores how a firm with a proactive sustainable behaviour engages stakeholders in developing innovation and creating value. A longitudinal, single case study of the Salcheto winery was carried out. Since the late 1990s, Salcheto has been at the forefront of wine eco-innovation and it has played a key role in the development of Montepulciano (Tuscany, Italy) as one of the first sustainable wine clusters worldwide. The development of a sustainable wine culture is one of the firm's various innovations. In doing so, the firm has had to face three challenges identity creation, legitimization and enhancement and has engaged its stakeholders through three specific mechanisms (adoption and development; co-creation and diffusion; exploitation and contamination). This virtuous cycle of stakeholder engagement has resulted in value creation at a firm, stakeholder and local level.