The current global economic paradigm, centred on growth, is a significant barrier in the transition towards a sustainable society. Business-as-Usual companies operating within this paradigm are perceived to prosper at the expense of society and environment which is not viable on a finite planet. The need to rethink the purpose of business is inevitable as maximising shareholder value, has been deemed insufficient to create a sustainable society.
This study aimed to explore: how business models can be used to create value that supports Strategic Sustainable Development. Previous research proposed that the concept of Business Models for Sustainability helps business place sustainability at the core of all consideration. A qualitative research was chosen for which we employed the Framework for Strategic Sustainable Development and combined a literature review with an investigation of three expert groups to answer our research question.
Our findings showed that, compared to other value forms, system value is the most appropriate concept for businesses striving towards sustainable development. Based on our findings, six themes emerged that businesses need to address to accelerate the speed of change towards sustainability. To make a relevant contribution to the intended audience, a prototype has been developed based on our findings.
Table of Contents
1. Introduction
1.1 The Sustainability Challenge
1.2 The Economic Paradigm of Business-as-Usual
1.3 The Impact of Business
1.4 Considering Business, Value and Sustainability
1.5 Case Study: Potable Water Industry
1.6 Aim
1.7 Scope
2. Research Design and Methodology
2.1 Methodological Approach
2.2 Phase 1: Literature analysis
2.3 Phase 2: Primary Data Collection
2.4 Answer to the Research Question
2.5 Limitations of the research design
2.6 Ethics
3. Results
3.1 Literature Results
3.2 Data Analysis Results
3.3 Summary of Results
4. Discussion
4.1 Theme 1: Lack of Common Language
4.2 Theme 2: Systems Perspective
4.3 Theme 3: System Value
4.4 Theme 4: The Core of Business
4.5 Theme 5: Mindset and Decision-making
4.6 Theme 6: Leadership and Collaboration
4.7 Framing in Existing Field of Literature
4.8 Prototyping Recommendations for Practitioners
4.9 Reliability and Validity
5. Conclusion
6. References
Research Objectives and Themes
The primary aim of this research is to identify value forms that support Strategic Sustainable Development and to investigate how business models can be utilized to create value at their core by adopting a systems perspective. The study seeks to address the gap where current dominant business value forms fail to support sustainable development, guiding society toward a sustainable stage.
- Evolution of value forms and the transition toward System Value.
- Integration of sustainability into the core of Business Models for Sustainability (BMfS).
- Methodological triangulation using academic literature and expert input from the potable water industry.
- Identification of six overarching themes (Lack of Common Language, Systems Perspective, System Value, Core of Business, Mindset, and Leadership) that influence sustainability transitions.
Excerpt from the Book
1.1 The Sustainability Challenge
There is an ongoing systematic degradation of ecological and social systems (Broman and Robèrt 2017). As awareness for the degradation is expanding, businesses are increasingly called on to contribute to sustainable development (Abdelkafi and Täuscher 2016; Baumgartner 2014). The sustainability challenge is an overarching term used to describe the current mechanisms that drive the destruction of our ecological and social systems.
Robèrt et al. (2015) argue that the growing impact of climate change, shrinking biodiversity, poverty and erosion of trust can be traced back to a few overriding mechanisms of destruction of our ecological and social systems. To understand the interconnectedness of the challenges, a holistic systems perspective is needed (Broman and Robert 2017; Abdelkafi and Täuscher 2016; Baumgartner 2014). This systems perspective is needed as Earth itself is a system, as shown in Figure 1.1 (Robèrt et al. 2015). The Earth is a closed system, being closed to matter but open to energy. Solar energy comes in, and energy is radiated back into space. Between the biosphere (where society exists) and the lithosphere (the Earth’s crust) is a slow exchange of matter, as visualized at the bottom of Figure 1.1. Through this exchange there is a systematic degradation occurring that is based on the enhanced human interaction between the biosphere and lithosphere (e.g., oil extractions).
Summary of Chapters
1. Introduction: Discusses the overarching sustainability challenge and the failure of the Business-as-Usual economic paradigm to account for ecological boundaries.
2. Research Design and Methodology: Details the pragmatic, qualitative research approach utilizing method triangulation through literature reviews, expert interviews, and questionnaires.
3. Results: Presents key findings from literature and primary data, highlighting the limitations of Shareholder and Shared Value compared to System Value.
4. Discussion: Explores six critical themes identified during the research, including the lack of common language and the necessity for a systems perspective in business decision-making.
5. Conclusion: Summarizes how Business Models for Sustainability can create system value to support Strategic Sustainable Development.
Keywords
Strategic Sustainability, Framework for Strategic Sustainable Development, Business Model for Sustainability, System Value, Shared Value, Sustainability, Business-as-Usual, Systems Perspective, Value Proposition, Socio-ecological system, Backcasting, Triple Bottom Line, Corporate Social Responsibility, Sustainability Challenge, Circular economy.
Frequently Asked Questions
What is the core focus of this thesis?
The thesis explores how businesses can transition from traditional "Business-as-Usual" models toward "Business Models for Sustainability" that create value within the constraints of the socio-ecological system.
What are the central thematic areas of the research?
The research centers on identifying appropriate value forms for sustainability, the role of leadership, the importance of a systems perspective, and the necessity of redesigning business models at their core.
What is the primary research question?
The study aims to answer: "How can business models be used to create value that supports Strategic Sustainable Development?"
Which methodology was employed for this study?
A pragmatic qualitative approach was used, involving a literature review combined with semi-structured interviews and questionnaires across three expert groups: the potable water industry, academia, and sustainability consultants.
What does the main body of the research address?
The main body evaluates current value forms, identifies obstacles to sustainable business models, and proposes guiding themes for practitioners to move toward Strategic Sustainable Development.
Which keywords best characterize this work?
Key terms include Strategic Sustainability, Framework for Strategic Sustainable Development (FSSD), System Value, and Business Models for Sustainability.
What is "System Value" in the context of this study?
System Value is defined as a holistic approach where a business addresses societal needs without hindering progress toward a flourishing future, moving beyond simple financial return.
Why did the authors choose the potable water industry as a case study?
This industry was selected because it is a significant contributor to single-use plastic waste, making it a relevant field to test new, more sustainable business models in a real-world context.
- Quote paper
- Sophia von Petersdorff (Author), 2018, The Purpose of Business. Where Value meets Strategic Sustainable Development, Munich, GRIN Verlag, https://www.grin.com/document/430994
