Organizations become green when leadership is committed to sustainability and possesses the creative talent to manage it effectively. Achieving profitability while ensuring social and environmental impact necessitates the development of new business models. Such models must integrate sustainability into the core operations of the company. To market sustainable products effectively, it is essential to connect the sustainability benefits with the core benefits sought by customers. Marketing messages must be tailored to resonate with what customers value, whether that be sustainability or traditional product attributes. This chapter argues that profitability can be enhanced through sustainable business practices. Companies that meet the standards of sustainable business practices will not only thrive in the competitive landscape but also secure their future by aligning with market demands and customer values. For lasting results and value creation, it is crucial for companies to engage both the market and customers in their sustainability efforts. A practical framework developed by Reckitt outlines four key strategies for businesses with legacy systems to achieve sustainability targets: fertilizing, transplanting, grafting, and hybridizing. This framework provides a roadmap for growth in sustainability efforts, enabling even established companies to transition to greener practices. In response to the growing demand for reducing greenhouse gas (GHG) emissions from investors, politicians, advocacy groups, and other businesses, companies must take proactive measures. A key contributor to these efforts is customer engagement. Sustainability initiatives often fail when customers do not actively support them. This is especially relevant as younger customers increasingly consider the environmental impact of their purchase decisions, making it imperative for businesses to align their practices with these values. The chapter also highlights the shifting value of corporate purpose, which has evolved from a focus on profit maximization to placing purpose at the centre of decision-making. Building a sustainable corporate strategy requires creating sustainable products and a sustainable value chain. This involves adopting a transformative business model that includes features such as personalization, closed-loop processes, asset-sharing, usage-based pricing, a collaborative ecosystem, and an agile, adaptive organization. Case studies from companies like DuPont, Maruti Suzuki, Reckitt, and Toyota are included to illustrate how these principles can be effectively implemented. These examples demonstrate the real-world application of sustainable business practices and the benefits they bring to organizations. Finally, the chapter emphasizes the importance of collaboration among companies to achieve a collective impact. Ensuring a shared agenda, a common measurement system, mutually reinforcing activities, constant communication, and support from other stakeholders is essential for the success of sustainable business initiatives. By working together, companies can amplify their efforts and make a more significant impact on the environment and society. This chapter is based on integration from research done about sustainable goals and business model. The cases are developed from news reports and articles on organisations that achieved success and those that failed.

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Building Business Model for Sustainable Growth

  • Julie Sunil

摘要

Organizations become green when leadership is committed to sustainability and possesses the creative talent to manage it effectively. Achieving profitability while ensuring social and environmental impact necessitates the development of new business models. Such models must integrate sustainability into the core operations of the company. To market sustainable products effectively, it is essential to connect the sustainability benefits with the core benefits sought by customers. Marketing messages must be tailored to resonate with what customers value, whether that be sustainability or traditional product attributes. This chapter argues that profitability can be enhanced through sustainable business practices. Companies that meet the standards of sustainable business practices will not only thrive in the competitive landscape but also secure their future by aligning with market demands and customer values. For lasting results and value creation, it is crucial for companies to engage both the market and customers in their sustainability efforts. A practical framework developed by Reckitt outlines four key strategies for businesses with legacy systems to achieve sustainability targets: fertilizing, transplanting, grafting, and hybridizing. This framework provides a roadmap for growth in sustainability efforts, enabling even established companies to transition to greener practices. In response to the growing demand for reducing greenhouse gas (GHG) emissions from investors, politicians, advocacy groups, and other businesses, companies must take proactive measures. A key contributor to these efforts is customer engagement. Sustainability initiatives often fail when customers do not actively support them. This is especially relevant as younger customers increasingly consider the environmental impact of their purchase decisions, making it imperative for businesses to align their practices with these values. The chapter also highlights the shifting value of corporate purpose, which has evolved from a focus on profit maximization to placing purpose at the centre of decision-making. Building a sustainable corporate strategy requires creating sustainable products and a sustainable value chain. This involves adopting a transformative business model that includes features such as personalization, closed-loop processes, asset-sharing, usage-based pricing, a collaborative ecosystem, and an agile, adaptive organization. Case studies from companies like DuPont, Maruti Suzuki, Reckitt, and Toyota are included to illustrate how these principles can be effectively implemented. These examples demonstrate the real-world application of sustainable business practices and the benefits they bring to organizations. Finally, the chapter emphasizes the importance of collaboration among companies to achieve a collective impact. Ensuring a shared agenda, a common measurement system, mutually reinforcing activities, constant communication, and support from other stakeholders is essential for the success of sustainable business initiatives. By working together, companies can amplify their efforts and make a more significant impact on the environment and society. This chapter is based on integration from research done about sustainable goals and business model. The cases are developed from news reports and articles on organisations that achieved success and those that failed.