SUSTAINABLE CONSUMPTION (AT HOME)
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1 SUSTAINABLE CONSUMPTION (AT HOME) CSR FORUM :15 AM - PANEL 2: IMPLEMENTING CSR-MANAGEMENT Jill Küberling - Strategic Management, Leuphana University of Lüneburg Dr. Marina Beermann - Systain Consulting GmbH»
2 BACKGROUND Sustainable Consumption at Home: Two Perspectives And a Case-Study Approach Research Perspective Practitioner Perspective Sustainable Consumption at Home 2
3 BACKGROUND Looking at the CSR-Status Quo: Shift of Action to a New Perspective on Corporate Social Responsibility RESSOURCES SUB- SUPPLIERS SUPPLIERS ORGANIZATION USE/ CONSUMER REUSE CSR actions within the nineties CSR actions of pro-active corporations today CSR future scenario 3
4 BACKGROUND Looking at the CSR-Status Quo: Recently Organizations have not adressed the Use-Phase ORGANIZATION USE/ CONSUMER REUSE Sustainable Consumption / Jill Küberling & Dr. Marina Beermann 4
5 BACKGROUND High Potential for Sustainable Consumption Consumers can make a considerate contribution to reduce the Carbon Footprint of textiles by their inidivual behavior ORGANIZATION USE/ CONSUMER REUSE References: UBA (2014): Soziale Innovationen im Aufwind, WWF (2012): Living Planet Report, Systain (2009). Sustainable Consumption / Jill Küberling & Dr. Marina Beermann 5
6 BACKGROUND Sustainable Consumption Following the definition of Shrivastava (1995a, pp. 955): sustainability as offering the potential for reducing long term risks associated with resource depletion, fluctuations in energy costs, product liabilities, and pollution and waste management. Ecological sustainability provides a basis for creating competitive advantage. There is a large and growing segment of consumers who want ecologically friendly products, packaging, and management practices. These "green" consumers are drawn to companies that genuinely use sustainable practices. The move toward ecologically sustainable development will require an overall value reorientation of both society and corporations. Sustainable Consumption / Jill Küberling & Dr. Marina Beermann 6
7 THEORETICAL SETTING CSR and Sustainable Consumption Motivations Economical Reputation, Customer Loyalty, Positive Firm Evaluations (Aguinis & Glavas 2012) Ecological Reduction of Ecological Footprint Social Source for Value Creation (Baumgartner, 2014) 7
8 RESEARCH QUESTIONS Research Questions Being aware about the high relevance of 1) sustainability along the whole supply chain, including the use-phase and 2) the rising group of sustainable consumers following research questions arise in the context of CSR: 1) How can the concept of sustainable consumption be implemented in the CSR strategy? 2) How can companies take responsibility for consumers behavior in a field of limited access: the use-phase of products? 8
9 CASE STUDY Case Study IKEA: Sustainable Life at Home IKEA & WWF: decided to collaborate in a project with the objective to find ways of helping and inspiring people to live a more sustainable life at home and thereby reduce their environmental impact and do this without compromising too much with everyday routines, and without adding extra costs and time. PILOT SURVEY 9 families in Kalmar/Sweden Duration of 6 months (2012) 8 home visits per family Focus: waste, energy, water, well-being In-store seminars Implementation of home furnishing solutions for a more sustainable life at home Tools for the analysis of their ecological footprint 9
10 CASE STUDY Results Non-Recyclable Waste - 70 % Average Electricity - 30 % Total Cost Savings - 30 % Sustainable Consumption / Jill Küberling & Dr. Marina Beermann 10
11 CASE STUDY Derived Actions & Implementation in CSR Strategy International initiatives on motivating and inspiring consumers to live a more sustainable life at home, especially by involving their consumers more Additional project on sustainable living at home in China with co-workers by creating an eco-house in the IKEA store Working on further product improvements for sustainable living Creation of online platform for interaction and sharing with others for an improvement of sustainable behavior Customers talking to customers creates more credibility Sustainable Consumption / Jill Küberling & Dr. Marina Beermann 11
12 CONCLUSIONS CONCLUSION The IKEA case shows that organizations can expand their corporate responsibility towards the use-phase of their products due to its concept IKEA can 1) decrease its own organizations environmental footprint & 2) intense its consumer relationship management & 3) foster sufficiency without dropping its business model (e.g. Rifken 2014). Increasing the demand of sustainable products by motivating consumers on a sustainable lifestyle 12
13 OUTLOOK OUTLOOK Organizations can provide its consumers solutions and inspire them to change their behavior provide tools for the measurement and the visualization of sustainable improvements on a consumer level expand the supply chain vertically and implement the product use phase especially in manufacturing industries The families in Kalmar have proved that there are no major barriers for people to start living more sustainably, but they need guidance on how to take the first steps. Even small changes can have a substantial, global impact. 13
14 CONTACT Jill Küberling Otto Group Chair of Strategic Management Leuphana University of Lüneburg Dr. Marina Beermann Systain Consulting GmbH, Hamburg 14
15 LITERATURE Aguinis, H., & Glavas, A. (2012). What we know and don t know about corporate social responsibility a review and research agenda. Journal of Management, 38(4), Baumgartner, R. (2014). Managing Corporate Sustainability and CSR: A Conceptual Framework Combining Values, Strategies and Instruments Contributing to Sustainable Development. Corporate Social Responsibility and Environmental Management, (21): Bhattacharya, C. B., Korschun, D., & Sen, S. (2009). Strengthening stakeholder company relationships through mutually beneficial corporate social responsibility initiatives. Journal of Business Ethics, 85(2), Bhattacharya, C. B., & Sen, S. (2003). Consumer-company identification: A framework for understanding consumers' relationships with companies. Journal of Marketing, 67(2), Collins, C. M., Steg, L., & Koning, M. A. (2007). Customers' values, beliefs on sustainable corporate performance, and buying behavior. Psychology & Marketing, 24(6), Crane, A., Matten, A. (2007). Business Ethics: Managing Corporate Citizenship and Sustainability in the Age of Globalization. Oxford: Oxford University Press. Dobson A Environmental Citizenship: Towards Sustainable Development. Sustainable Development 15: DOI: /sd.344. Donaldson, T., & Preston, L. E. (1995). The stakeholder theory of the corporation: Concepts, evidence, and implications. Academy of management Review, 20(1), Hogg, M. A. (2006). Social identity theory. Contemporary social psychological theories, 13,
16 LITERATURE Kotler, P., & Armstrong, G. (2010). Principles of marketing. Pearson Education. Sen, S., & Bhattacharya, C. B. (2001). Does doing good always lead to doing better? Consumer reactions to corporate social responsibility. Journal of marketing Research, 38(2), Shrivastava (1995), The role of corporations in achieving ecological sustainability, Academy of Management Review, Vol. 20 No. 4, pp Solomon, E. (2001). The dynamics of corporate change: Management s evaluation of stakeholder characteristics. Human Systems Management, 20, Young, CW, Hwang, K, McDonald, S and Oates, C (2010). Sustainable consumption: green consumer behaviour when purchasing products. Sustainable Development, 18 (1)
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