This report discusses the importance of sustainable innovation and its benefits, with a focus on UK-based green energy company Ecotricity. It also analyzes current lifestyle practices and suggests sustainable ideas for a better future.
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BUILDING A SUSTAINABLE ORGANISATION
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Table of Contents INTRODUCTION...........................................................................................................................3 MAIN BODY...................................................................................................................................3 PART A...........................................................................................................................................3 CRITICALLY ANALYSING THE IMPORTANCE OF SUSTAINABLE INNOVATION.....3 PART B............................................................................................................................................6 1. ANALYSIS OF CURRENT LIFESTYLE..............................................................................6 2. SUSTAINABLE IDEAS.........................................................................................................7 CONCLUSION................................................................................................................................7 REFERENCES................................................................................................................................8
INTRODUCTION This report of building a sustainable organization will comprehensively illustrate the sustainable approaches available as a substitute to the regular approaches in day to day life. In the beginning of the report a critical study of importance of sustainable innovations have been mentioned. Sustainable approaches are the ability to conserve natural resources for future generations to come without exploiting the resources. The real life example taken for this purpose is “Ecotricity”. Ecotricity has over the years revolutionized the sustainable approach in the industry, as it is the world's first green energy company. Further, in the next part of the report a critical evaluation of current lifestyle and daily practices that needs to be changed in order to have an environmental friendly approach of living will be mentioned, at last developing and considering sustainable approaches we can adapt in our lifestyle for the better preservation of the natural resources will be discussed. MAIN BODY PART A CRITICALLY ANALYSING THE IMPORTANCE OF SUSTAINABLE INNOVATION Intoday'sera,Innovationisvitalforanycompanytosurviveandfightagainst competition. Sustainable approaches adapted by the organizations are a way of letting the society know that company's care for environment, and they would do best in their capacities to bring betterment. Innovation is implementing the creativity into action to generate more profit and high productivity. Sustainable Innovation is all about adding sustainability to innovation. This means producing goods and services that not only gives more economy to organisation but takes into consideration the long term benefit towards the social and environmental dimensions (Kusi- Sarpong, Gupta and Sarkis, 2019.). British based Ecotricity company is selling green electricity which is made with the help of sun, water and air. The vision and mission of the company is to build a healthy environment. Importance of Sustainable Development are: Improved brand image:For the company, its reputation and brand name is really important. To create a value in the market, major role is played by the fact that what is the company doing for the social, economical and environmental issues. It also becomes the part of corporate social responsibility of the company to work towards the environment .Ecotricity's vision is to end the use of fossil fuel to generate electricity so that the environment is not getting
polluted. In less than few years, it has gain immense appreciation in Britain for the renewable electricity. Ecotricity is now the known name in producing Green Electricity. The company is expanding on higher scale with new wind and sun parks all over the country. Eecotricity is being awarded for sustainable energy in 2007. It took a lot of time and money to research and come up with the idea of green electricity. The company has gone through many failures to build a successful plan and build the brand image. Low cost production:Sustainable innovation include minimizing the cost of production by reducing the amount of waste and effectively using the material to create value to the company. It's important to carefully use the resources in most efficient way so that the future generation doesn't face crises. Ecotricity produce green electricity with the help of sun, water and wind mills. These resources are sustainable with zero negative impact on the environment (Grabara, Hussain and Szajt, 2020). Low cost of production is a direct benefit to the consumers that attracts more customers. Attracting talented employees:Research indicates that the crucial reason for a job switch is the search for an innovative environment. Hiring at the top-level of hierarchy can be easy if company has such attractive sustainable approach. Sustainable innovation is the outcome of thinking out of the box. Creative and talented employees lead to better innovations and think differently to solve a problem. An innovative work culture attract the talented people towards the company where the employees feel empowered in contributing to make a better world to live in. Acknowledgement and appreciation helps in motivating the employees to be more productive and innovative (Lüdeke‐Freund, 2020). Talented and skilful employees have the capabilities to take the company to new level with more customers and high productivity. Ecotricity is a cost effective sustainable company, generally earns less profit then the non sustainable company that leads to low salary to the employees. Develop new market:it involves making Sustainable innovation leads to the develop the newmarketfortheproduct.Peoplewhoareinclinetowardsthesocio,economicand environmental perspective of the company gets attracted to use the product and services offered. Environment friendly:Ecotricity believes that burning of fossil fuel badly impact the environment and pollute the surroundings. Sustainable innovation are environment friendly with no or minimum impact on the environment. The company is saving around 40,000 tonnes of
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carbon dioxide in a year and providing green electricity to almost 55,000 houses. Renewable electricity is comparatively expensive from the fossil fuel (Sustainable innovation practices and their relationship with the performance of industrial companies.2022.). This will increase the prices for industry and household use of the green electricity. New Customers:The number of people increasing day by day who are worried about the climatic condition. According to a research it is found that people are more likely to buy from a company that focuses on their social responsibility and are less harmful to the environment around them (Cillo and et.al., 2019). Customers are attracted to the organisation who share the same value. According to a study, customers are ready to pay approx 22% more to the company who believes in sustainability. Competitive advantage:Competition is faced by all the business. Creating a sustainable product which is one of a kind can turn into a no competition situation because of the uniqueness oftheproductorservices.Sustainableinnovationgivesthepowertostandoutofthe competition. It encourages a different thinking. Low competition level is observed by Ecotricity because of there environment friendly way of generating electricity. It place the company in the market through favourable condition. As the concept of sustainable innovation is expanding widely, have attracted to many new start ups. Customer satisfaction:High customer satisfaction is the outcome of focusing on the sustainable innovation. Innovation creates the opportunity of satisfy the old customer and create new market. The customers who value the environment and understands the importance of maintaining it, usually feels immense satisfaction from buying products and services from such companies (Abbas and et.al., 2020). Ecotricty have many such proud customers. Government support:Government of many countries have extend their support to the companies involved in sustainable innovation. Growing concern about the public health due to polluted water, wastage of raw material have emphasized on the sustainable innovation. Many schemes like tax reduction, easy availability of loan, easy acquisition of raw material, etc. are started by the authorities to encourage more of sustainable business. Develop Awareness:Most of the world is still not aware about the use and development of sustainable product. These are the long term benefits for the business as well as for the environment. Innovation of sustainable product will improve the substantiality of the company.
Every year a large number of animals and birds get distinct because of the climate change and global warming. It is important to recognize the importance of sustainable innovation. Preventing over exploitation of resources:Having such sustainable innovative approach leads to the preservation of the natural resources and this could in turn lead to the longevity of the company as they can use the resources over the longer period and this is the greatest advantage. Many companies run out of resources such as raw materials etc. because of overusing resources and therefore business does not last longer(Qureshi, 2020). Strongnetworksinindustry:Adaptationofsuch sustainableapproachesleadsto building strong networks in the industry. As everyone wants to keep good relation with a respected company. Every organization needs strong networks or relations in the industry for the longevity of the business as such relations bring company's brand value higher. And in times of difficulty or need these relationships are of utmost use. Therefore, it can be said that sustainable innovations are of utmost importance in the industry. PART B 1. ANALYSIS OF CURRENT LIFESTYLE Sustainability is not a single task but a series of actions taken in a day to day life for the preservation of natural resources. If we look closely towards our lifestyle, we can find out many habits or practices that we can change in order to adapt a sustainable approach of living. Starting from water, an average household in UK uses 349 litres of water every day. As climate change is affecting the rain cycle and causing draughts around the world, it is of utmost importance to save water. Choice of mode of transportation in daily life while going to work, leisure, school etc. every household in UK has an average of 1.2 cars (Hsu and Chen, 2021). And an individual chooses own vehicle to commute every day and such choice of commute highly impacts the environment as it leads to pollution as well as exploitation of natural resource which is fuel. Habit of reuse and recycle, we tend to use so many things in our day to day life without giving a thought about each item's capability to be reused. Like for instance, clothing, clothing industry is booming because people believe in buying trendy things and trends are changing rapidly. English people buy so many clothing and it is glutting the landfills. Another such thing is plastic, we use plastic in almost everything, use of plastic in day to life include, bottles, containers, single use plastic, packaging etc. and plastic is not at all environmental friendly as it can't be bio degraded easily. It is harmful to marinlife and wildlife. Habit of using toxic chemicals in so many things at
homesuchasfloorcleaner,othercleaningproducts,beautyproducts,washingpowder, fragrances, body care etc(Thøgersen, 2018). 2. SUSTAINABLE IDEAS As I analysed the lifestyle, I came up with so many lifestyle habits that could be changed to have a sustainable approach of living. Very first thing is changing the habit of ruthless use of water by practising small things such as close the tap while brushing, rain water harvesting, fixing the leaks in faucets, use bucket to clean the floors etc.(Mataracı and Kurtuluş, 2020). We should use more of public transportation or car pool methods for commuting daily as this saves fuel. And try to use energy efficient resources at home. Adapt electricity saving approaches in lifestyle as electricity needs natural gases and coal for production e.g. don't buy more than one electronic gadgets like phone laptop etc. Further, mindful clothing habits, first buying only if needed, that too organic environmental friendly clothes, second try to reuse them, third donate clothes. Cut-down the single use plastic totally, try to reuse plastic as much as possible and replace it with sustainable products, such as wooden toothbrush, metal bottles, bags made of cloth etc. buying products from companies who believe in having sustainable approach of working and providing sustainable environmental friendly products. As, this could promote environmental friendly businesses in UK. Overall develop an eco friendly and a sustainable habit of living which lead topreservation of resources and making world a better place(Hole and Hole, 2019). CONCLUSION In the above report of “building a sustainable organization”, a detailed discussion of importance of sustainable innovation has been mentioned such as cost-cutting, improved brand image, strong industry networks, longevity of company, developing awareness etc. The above discussionalsoincludes'Ecotricity'asthesourceoforganization,basedinUKhaving sustainable and eco friendly approach of working. This company is the oldest in sustainable business world, providing green energy to the consumers. Further, introduction of substantiality has been illustrated. A detailed analysis of current lifestyle highlighting resources that should be saved such as fuel, water, energy, electricity etc. and potential habits that could be incorporated are explained. The Sustainable ideas and practices that I came up with such as commuting, shopping, preservation etc. and which can also be complied in daily life for the eco friendly approach of living has been brought to light.
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REFERENCES Books and journals Abbas, J. and et.al., 2020. Sustainable innovation in small medium enterprises: the impact of knowledge management on organizational innovation through a mediation analysis by using SEM approach.Sustainability. 12(6). p.2407. Cillo,V.andet.al.,2019.Understandingsustainableinnovation:Asystematicliterature review.CorporateSocialResponsibilityandEnvironmentalManagement.26(5). pp.1012-1025. Grabara, J., Hussain, H. I. and Szajt, M., 2020. Sustainable university development through sustainable human resources and corporate entrepreneurship: The role of sustainable innovation and work environment. Amfiteatru Economic. 22(54). pp.480-495. Hole, G. and Hole, A. S., 2019. Recycling as the way to greener production: A mini review. Journal of Cleaner Production.212.pp.910-915. Hsu, C. L. and Chen, M. C., 2021. Advocating recycling and encouraging environmentally friendly habits through gamification: An empirical investigation.Technology in Society. 66p.101621. Kusi-Sarpong, S., Gupta, H. and Sarkis, J., 2019. A supply chain sustainability innovation framework and evaluation methodology. International Journal of Production Research. 57(7). pp.1990-2008. Lüdeke‐Freund,F.,2020.Sustainableentrepreneurship,innovation,andbusinessmodels: Integrative framework and propositions for future research.Business Strategy and the Environment. 29(2). pp.665-681. Mataracı, P. and Kurtuluş, S., 2020. Sustainable marketing: The effects of environmental consciousness, lifestyle and involvement degree on environmentally friendly purchasing behavior.Journal of Global Scholars of Marketing Science.30(3). pp.304-318. Qureshi, S. M. Q., 2020. Learning by sustainable living to improve sustainability literacy. International Journal of Sustainability in Higher Education.21(1). pp.161-178. Thøgersen,J.,2018.Transport-relatedlifestyleandenvironmentally-friendlytravelmode choices: A multi-level approach.Transportation research part A: policy and practice. 107.pp.166-186. Online references Sustainable innovation practices and their relationship with the performance of industrial companies.2022.(Online).Availablethrough: <https://www.emerald.com/insight/content/doi/10.1108/REGE-01-2018-0005/full/html> <https://www.greenamerica.org/green-living/10-habits-highly-sustainable-people>