Lecture 4: Creating environmental value Flashcards
(18 cards)
When do society and business ignore environmental damaging negative externalities?
When the environment is NOT seen as a stakeholder
What are the 5 key sources of environmental degradation?
- Linear economy models – take, make, use, discard
- Industrial and agricultural pollution
- Societal driven pollution and consumption
- Deforestation
- Carbonization of the atmosphere
When the environment IS seen as a stakeholder’ society and business can ….
When the environment IS seen as a stakeholder’ society and business can reduce (even eliminate) negative externalities, a triple bottom line value proposition
What can be obtained by this triple bottom line value proposition? (5)
- Reduce pollution (pre and post consumer)
- Reduce waste, reuse, find alternative resources and sources of energy
- Reduce material usage and energy consumption
- Decarbonization: reduce CO2 production and increase CO2 capture
- Protect and restore natural environments (on land and in water)
Who are often the most active change makers and why?
Entrepreneurial business are often the most active change makers as they;
- are not constrained by legacy operational practices and infrastructure
- can design the business models to meet specific sustainability missions and
personal goals
- are willing to engage in radical innovation
- are wiling to act where there is much uncertainty
- are able to see societal and environmental challenges as sources of opportunities
- & sustainable entrepreneurs operate with a sustainability-oriented logic: the “logic of empowerment” (Santos, 2012) and aim for sustainable advantage versus competitive advantage
What does the ‘triple’ stand for in the Triple bottom line approach?
value creation for:
o Customers
o Society
o Environment
What are the 8 Sustainable business model architypes? (in the model of Bocken et al. 2014)
- Maximize material and energy efficiency
- Create value from ‘waste’
- Substitute with renewables and natural processes
- Deliver functionality, rather than ownership
- Adopt a stewardship role
- Encourage sufficiency
- Re-purpose the business for society/environment
- Develop scale-up solutions
What are the three pilars of the business model framework and what do they cover?
- Value Proposition: product/service, customer segments and relationships
- Value creation and delivery: key activities, resources, channels, partners and techonology
- Value capture: cost structure & revenue streams
What is the paper of Todeschini et al. 2017 about?
Innovative and sustainable business models in the fashion industry:
Entrepreneurial drivers, opportunities, and challenges creating environmental value
What are the 2 goals of the paper by Todeschini et. al 2017?
- identify the large-scale, socioeconomic, and cultural trends that are pressuring the current dominant fast fashion approach
- explore innovative business models in the fashion industry that have sustainability as their defining characteristic, especially in terms of value proposition
How do we define the macro-trend in this context?
The macro-trend is the driver of sustainable innovation
What are the macro trends of SBM in the fashion industry according to Todeschini et al. 2017? (5)
- consumer awareness
- circular economy
- CSR
- sharing economy and collaborative consumption
- technological innovation
How does the trend of circular economy translate itself in the fashion industry?
- recycling
- upcycling
- vegan
How does the trend of CSR translate itself in the fashion industry?
- sweatshop free
- fair trade
- locally sourced
How does the trend of shared economy and collaborative consumption translate itself in the fashion industry?
- fashion library
- second hand
- collaboration
How does the trend of technological innovation translate itself in the fashion industry?
- sustainable raw materials
- zero waste
- wearables
How does the trend of consumer awareness translate itself in the fashion industry?
- capsule wardrobe
- lowsumerism
- slow fashion
