There Is No Planet B: Aligning Stakeholder Interests to Preserve the Amazon Rainforest.

This article examines how firms can effectively address complex collective action problems by aligning stakeholder interests, focusing on Natura, a Brazilian cosmetics company, and its efforts to preserve the Amazon rainforest. Natura implemented innovative "Coasean arrangements" by linking environmentally conscious consumers with Indigenous Amazonian communities, encouraging the sustainable harvesting of forest products rather than deforestation for conventional agriculture. Using georeferenced satellite data and an instrumental variable approach based on missing satellite images, the study finds that Natura’s entry into municipalities is significantly associated with forest preservation—estimated at 730,000 hectares saved—and shifts in local agriculture from conventional to forest-compatible products. The findings highlight the role of stakeholder-oriented firms in creating durable institutional arrangements that internalize environmental externalities, contributing to global environmental goals such as the United Nations’ Sustainable Development Goals on climate action and life on land.