Search results

Strategic Management, Business Ethics.

This case is suitable to be used in advanced undergraduate and MBA/MSc level.

The case accentuates the challenges faced by Geetanjali Woollens in its mechanical recycling business which is proving detrimental to its African business expansion plans. The case is developed from the episodes of divergence in January 2018 when the buyers’ non-acceptance of mechanically recycled products initiated a managerial dilemma between “business sustenance” and “sustainable business” for Geetanjali Woollens. Being associated with the recycling business for more than 25 years, Madhukar Ghosh, the General Manager at Geetanjali Woollen recycling unit, was delving upon practical, supply-chain-wide solutions to generate standard acceptance norms for mechanically recycled textiles. For him, ethical purpose of business existence was equally important as the profit motive. Bringing operational clarity and standardized regulatory framework still seemed a big challenge for international policymakers and torchbearers of environmental responsibility, and Governments and NGOs popularizing green initiatives. Lack of policy guidelines for business behavior was exacerbating the business functioning. Madhukar knew that consistent buyer policies and standard regulatory framework could clear some mist and induce maturity in the concept of circular economy. Some formalizations were expected till the end of December 2018, if the deadlines did not get pushed further.

The objectives of this case are as follows:

• to highlight the limitations that recycled apparel and textile products have and the concerns that emerge for buyers, designers, and consumers, due to these limitations;

• to highlight the myopic business vision with which the recycling business is suffering due to the lack of a formalized regulatory framework, which in turn is creating various system barriers and making recycling business an unattractive proposition;

• to appreciate the contribution of mechanical recycling of post-consumer textile waste as a closed-loop manufacturing technique in recouping the eco-impacts of increased disposal of apparel and textile products; and

• to promote discussions for innovative solutions for limitations and concerns related to substances of concern in the recycling business and deliberations for a more effective tracking of such substances to facilitate buyer acceptance of mechanically recycled products.

to highlight the limitations that recycled apparel and textile products have and the concerns that emerge for buyers, designers, and consumers, due to these limitations;

to highlight the myopic business vision with which the recycling business is suffering due to the lack of a formalized regulatory framework, which in turn is creating various system barriers and making recycling business an unattractive proposition;

to appreciate the contribution of mechanical recycling of post-consumer textile waste as a closed-loop manufacturing technique in recouping the eco-impacts of increased disposal of apparel and textile products; and

to promote discussions for innovative solutions for limitations and concerns related to substances of concern in the recycling business and deliberations for a more effective tracking of such substances to facilitate buyer acceptance of mechanically recycled products.

The circular economy has become a significant policy in many countries around the world. In order to achieve a circular economy, wasteful use of resources must be reduced and waste products from manufacturing must be reintroduced into production systems. It is, however, impossible to totally avoid scraps from the production of most goods. This chapter describes an investigation of current practices of 108 small-and-medium-sized manufacturers (SMEs) regarding their use of solid wastes or scraps. Of particular interest are the scraps generated by SMEs because they comprise 98.5% of all manufacturers in Thailand. Despite concern regarding the growing volume of scraps from production lines, this study collected data from both factory visits and from manufacturers and found that waste reclamation policies among SMEs are rare. Most factory owners resort to selling off-cuts to formal and informal recyclers as well as dumping scraps in the city’s bins. Despite the general recognition of the growing creative industry in Thailand, the use of design has not been considered as a potential solution to this problem by manufacturers. Since failures in scrap reclamation schemes for product designs also hinge on market prospects and opportunities perceived by manufacturers, market strategies in the green economy must be devised. Only then can Thailand achieve circular material flow in its industrial sector.

System change for the circular economy (CE) in the society requires innovative thinking in refining existing material into new resources and collaboration with different actors. We introduce examples of decomposers with different roles in a circular ecosystem. Examples from reusers of waste material, users of recycled materials, designers of new technologies, and facilitators of CE networks are introduced to illustrate how companies contribute to a circular ecosystem in the clothing and textiles industry. Moreover, we illustrate the networked nature of supply chains of circular materials.

To create circular economies, we need supply systems to convey materials between their use lives. Often, though, it is not possible to control an entire supply network. Without a coordinator to implement circular economy principles, how can circular supply systems come to be? This chapter sets out to build on complex adaptive systems (CAS) theory and circular economy research to conceptualize how information flows between actors can facilitate the emergence of a circular supply system. It begins by outlining why a supply network can be considered a CAS, as well as the CAS progression from information to adaptation to emergence. Next, it argues that information on local supply networks, extended supply systems, and biosphere impacts is particularly important for circular production. Finally, it concludes with two potential types of emergence that can stem from these information flows: (1) new actor roles and networks and (2) new spatial and temporal patterns. Ultimately, this conceptual overview aims to give researchers and practitioners a CAS frame for thinking about how continual adaptation to information flows can enable change toward circular supply systems.

This chapter highlights how implementing circular economy principles can help companies working with sustainability to move from a reductionist and waste management approach to marketing competitive circular value propositions that intentionally design out waste (e.g. emissions and pollution) by rethinking, reinventing and redesigning the value chain. Schijvens, a Dutch family-owned corporate fashion textile company, acts as a case for exemplifying successful implementation of circular economy principles as a marketing strategy in a sector that struggles with finding solutions to the ethical challenges of producing and marketing textile fashion. The textile industry has, for many years, been accused of production that is based on environmentally harmful processes and conditions that are not socially fair. Circular economy principles provide a range of suggestions to address the ethical challenges occurring from covering the human needs of having clothes to wear. Yet, implementing circular economy principles is not a panacea. It is not only a question of delivering a technological quick fix but also a question of managing the new processes and human mindset guiding the actions in the value chain. This chapter, therefore, outlines reasons for a different perspective on the traditional linear value chain and related implications managers face when undertaking a journey from sustainability based on a reductionist approach to a closed-loop approach. It is argued that implementing circular economy principles by pro-actively managing the value chain processes based on eco-centric dynamic capabilities can provide even more radical changes than the incremental reductionist approach often associated with being a green sustainable company.

Buying secondhand clothing is not only interesting for consumers wanting to save money but also for sustainable clothing enthusiasts. It is now among a number of consumption practices which slow down fast fashion production while saving 10 to 20 times the energy (Fletcher, 2008, p. 100). While most of the recent scholarly work focuses on secondhand consumers (Bianchi & Birtwistle, 2010; Franklin, 2011; Norum, 2015), this paper aims to examine business activities. This perspective from economic anthropology enhances understandings of secondhand clothing, as research to-date has tended to neglect the semiotic function of clothing while underlining exchanges. To gain insight into the dynamics of the sector in Germany today, two businesses from Hamburg have been ethnographically examined by the author since 2014. This study outlines their work practices and explains the development of this high-end segment of the market from the 1970s until the digital age. For businesses, the digitalization of the trade has had massive effects on their business practice because it seems to solve inherent problems connected to the selling of pre-owned clothing. I argue that the digitalization did not only promote acceptance of buying secondhand clothing in Germany but also the emergence of new businesses models.

Swapping as part of collaborative consumption is not a new phenomenon per se, but might gain increased importance after the recent COVID-19 pandemic that has seen a shift in consumer attitudes, consumption, and disposal behaviour. Swapping as one form of collaborative consumption, however, is currently neither mainstream nor target towards the general population, but rather a niche population (secondhand consumers). With sustainable issues (environmental, economic, and social) remaining a key concern, and consumers seeking to dispose of their garments, swapping might become an increasingly attractive alternative, yet currently it may not be communicated as such. This chapter explores the potential of creative marketing communications to enhance the uptake of swapping in order to overcome a key challenge in the industry: fashion waste.