Achieving more with less: Henkel’s Factor 3 strategy

2016 ◽  
Vol 37 (3) ◽  
pp. 3-11
Author(s):  
Van Patterson ◽  
Joe Knott ◽  
Rob Melnick

Purpose This paper aims to provide an inside view and analysis of corporate eco-efficiency/sustainability strategy resulting in recommendations for the consumer goods industry. Design/methodology/approach The paper is framed by a literature review and case studies of corporate sustainability strategies. Original research was conducted via in-depth, face-to-face interviews (26) of Henkel senior management familiar with the company’s “Factor 3” strategy. Findings This research identifies certain challenges to corporate sustainability strategy including consumer use of products and how best to measure ecological and social footprints. It shows that many managers find the Factor 3 strategy to be clear and understandable but with challenging goals and metrics; managers and executives are optimistic about success and feel Factor 3 gives Henkel a competitive edge. This paper uncovers areas of in the strategy that need improvement including consumer education, industry partnering, accountability and supply chain strategy, and also finds that the Factor 3 affects employees on a personal level, changing behavior and evoking positive responses. Originality/value While there is considerable literature on corporate eco-efficiency sustainability strategies, there has not been sufficient critical third-party analysis of how these strategies are progressing, the challenges they face and what their trajectory is. Because strategies like Henkel’s Factor 3 represent an increasingly popular corporate vision and set of articulated goals, researchers and practitioners need a deeper understanding of how large, global companies are tackling sustainability and how successful these strategies have been.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Karola Bastini ◽  
Fares Getzin ◽  
Maik Lachmann

PurposeThis study explores the relations among corporate sustainability strategies, the intense use of sustainability control systems (SCSs) to implement these strategies and the emergence of organizational capabilities for sustainability.Design/methodology/approachUsing survey data from a sample of 157 European firms across different industries, the authors explore differences between reactive and proactive sustainability strategies in their impact on the intense use of SCSs. The authors analyze the joint impact of a proactive sustainability strategy and an intense use of SCSs on the emergence of the organizational capabilities of sustainable market orientation, sustainable organizational learning and sustainable innovation. Furthermore, we explore the relevance of single levers of control for these capabilities.FindingsThe results show that a proactive sustainability strategy is associated with an intense use of SCSs and with the development of the three organizational capabilities. The authors provide evidence that the intensity of use of SCSs mediates the association between proactive sustainability strategy and the emergence of the three organizational capabilities. An interactive use of controls is constantly more important than a diagnostic use of controls in the emergence of the three capabilities.Originality/valueThe findings provide novel empirical evidence on the mechanisms through which corporate sustainability strategy is implemented in European organizations. The results contribute to an improved understanding of the organizational determinants underlying the development of organizational capabilities for sustainability.


2015 ◽  
Vol 43 (3) ◽  
pp. 44-48 ◽  
Author(s):  
Gayle C. Avery

Purpose – This article reports on a whitepaper showing the key success factors involved in driving corporate sustainability, and illustrates them using mini-case studies. Design/methodology/approach – Results from a 2015 whitepaper published by Boston Consulting Group and MIT Sloan Management Review in association with the United Nations Global Compact are discussed. The findings are based on interviews conducted globally with 2,587 business managers, experts and practitioners. Best practice examples are provided of what three leading corporations are doing to achieve their sustainability strategies. Findings – Two key drivers of corporate sustainability emerged. First, successful corporate sustainability involves collaborations with a range of other organizations. Essentially, the more partners in a particular project, the more successful the initiative is judged to be. Second, boards drive successful corporate sustainability where directors are interested in setting the sustainability strategy, its implementation and the outcomes. Research limitations/implications – The findings open many research questions and hypotheses to sustainability researchers and academics. Practical implications – Guidance is provided for senior executives seeking to improve and/or increase corporate sustainability initiatives, namely, to collaborate with other parties and engage the board. Social implications – The planet and its inhabitants will benefit if obstacles to successfully tackling wicked problems such as hunger, poverty and the effects of climate change can be reduced using the power of collaborations between business, government, NGOs, and academe. Originality/value – This paper provides insight into the perceived current state, obstacles and drivers of corporate sustainability, along with examples of successful approaches.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ratna Wardhani ◽  
Yan Rahadian

Purpose Global palm oil production is growing rapidly, especially in Southeast Asia, with Indonesia and Malaysia as the biggest producers. Despite significant contributions to these countries’ economies, environmental and social aspects continue to be debated within this industry. The sustainability strategy is very important for the palm oil industry. This study aims to explore the sustainability strategy using six elements, namely, stakeholder engagement, governance and leadership, sustainability view and the economic, environmental and social strategies of Indonesian and Malaysian palm oil companies. Design/methodology/approach This study observes 21 Indonesian palm oil companies and 44 Malaysian palm oil companies from 2014 to 2018 with a total observation of 280 firm years. The methodology used in this study is a qualitative content analysis of six themes based on the sustainability strategy elements, which was further developed into 40 indicators. Content analysis is carried out on information published in annual reports and sustainability reports. Findings The study results indicate that stakeholder engagement, governance and leadership and strategic view of the palm oil companies in Indonesia and Malaysia are still likely to be weak. Palm oil companies have not demonstrated their focus on implementing economic, environmental and social strategies. Although the results indicate that there is a greater emphasis on environmental and social strategies than on economic issues, attention to both issues is still very low. Practical implications Palm oil companies need to integrate sustainability strategies in their business models and communicate them well to stakeholders to increase their competitive advantage in the palm oil industry. The government also needs to issue stricter rules and incentives to encourage companies to implement sustainability strategies. Social implications The study results provide implications for the communities around palm oil plantations to provide better social control so that companies can implement sustainability strategies in their business processes. Originality/value This study highlights the importance of sustainability practices integrated into palm oil companies’ business models, which have not been well implemented in the palm oil industry in the world’s largest producing countries.


Author(s):  
Bhaskar B. Gardas ◽  
Rakesh D. Raut ◽  
Balkrishna E. Narkhede

Purpose The purpose of this paper is to identify and model the evaluation criteria for the selection of third-party logistics service provider (3PLSP) by an interpretive structural modelling (ISM) approach in the pharmaceutical sector. Design/methodology/approach Delphi technique was used for identifying the most significant criteria, and the ISM method was employed for developing the interrelationship among the criteria. Also, the critical criteria for having high influential power were identified by using the Matrice d’Impacts Croisés Multiplication Appliqués à un Classement analysis. Findings The most significant factors, namely, capability of robust supply network/distribution network, quality certification and health safety, service quality and environmental quality certifications, were found to have a high driving power, and these factors demand the maximum attention of the decision makers. Research limitations/implications As the ISM approach is a qualitative tool, the expert opinions were used for developing the structural model, and the judgments of the experts could be biased influencing the reliability of the model. The developed hierarchical concept is proposed to help the executives, decision and policy makers in formulating the strategies and the evaluation of sustainable 3PLSP. Originality/value It is an original research highlighting the association between the sustainable 3PLSP evaluation criteria by employing ISM tool in the pharmaceutical industry. This paper will guide the managers in understanding the importance of the evaluation criteria for the efficient selection of 3PLSP.


2020 ◽  
Vol 17 (1) ◽  
pp. 43-58 ◽  
Author(s):  
Kimberly McCarthy ◽  
Jone L. Pearce ◽  
John Morton ◽  
Sarah Lyon

Purpose The emerging literature on computer-mediated communication at the study lacks depth in terms of elucidating the consequences of the effects of incivility on employees. This study aims to compare face-to-face incivility with incivility encountered via e-mail on both task performance and performance evaluation. Design/methodology/approach In two experimental studies, the authors test whether exposure to incivility via e-mail reduces individual task performance beyond that of face-to-face incivility and weather exposure to that incivility results in lower performance evaluations for third-parties. Findings The authors show that being exposed to cyber incivility does decrease performance on a subsequent task. The authors also find that exposure to rudeness, both face-to-face and via e-mail, is contagious and results in lower performance evaluation scores for an uninvolved third party. Originality/value This research comprises an empirically grounded study of incivility in the context of e-mail at study, highlights distinctions between it and face-to-face rudeness and reveals the potential risks that cyber incivility poses for employees.


IMP Journal ◽  
2018 ◽  
Vol 12 (1) ◽  
pp. 148-170 ◽  
Author(s):  
Sigurd Sagen Vildåsen ◽  
Malena Ingemansson Havenvid

Purpose Most scholars acknowledge the role of firm-stakeholder relationship for enabling corporate sustainability (CS), but existing literature tends to apply a superficial understanding of interaction. Thus, the purpose of this paper is to advance knowledge by challenging classical stakeholder theory with fundamental insights from the IMP perspective, which in turn leads to a deeper conceptualization of interactive CS. Design/methodology/approach A typology framework is developed through an abductive research design grounded in the concepts of actors, resources, and activities. The authors illustrate the potential of the framework through a longitudinal case study. The empirical case revolves around an initiative for recycling of plastic material in a partly beforehand established supply chain, and the study reveals three main findings. Findings First, recycling solutions can result in major technological challenges. For example, using recycled material can jeopardize industrial quality standards. Second, third-party stakeholders represent critical knowledge and competence that can remedy technological challenges. Finally, R&D projects are important means for developing firm-stakeholder relationships. Research limitations/implications The paper introduces IMP concepts to the CS debate, which can illuminate the emerging literature on tensions and paradoxes related to CS phenomena. Further research is needed on the role of non-business actors as capacity generators for social and environmental change in traditional business networks. Practical implications The proposed framework can be used to analyze why some stakeholders (individuals and groups) turn into contributing actors in inter-organizational relationships, while others remain latent. Originality/value This paper illustrates the usefulness of actor bonds, resource ties and activity links as explanatory concepts. Moreover, developed relationships in terms of collaboration and networks represent a capacity to change, which is overlooked in current CS debates.


2014 ◽  
Vol 5 (2) ◽  
pp. 180-202 ◽  
Author(s):  
Karina Clara C. Romero ◽  
Richel L. Lamadrid

Purpose – This investigation is guided by the following research questions: employing Hart and Milstein’s (2003) Sustainable Value Framework as analytic tool, what is the extent of the integration of sustainability focused strategies by Asian-based companies in their corporate social responsibility (CSR) initiatives? How can the ethics of responsibility of Hans Jonas help rethink the current understanding and doing of CSR in Asia towards achieving a truly responsible and sustainable corporate identity? Design/methodology/approach – This research uses Centering Resonance Analysis (CRA), which is a relatively sophisticated form of content analysis methodology suitable for studying formal written communication such as the published CSR reports. To accomplish the complex task of CRA, the Crawdad Text Analysis System 1.2 is used. The Crawdad Text Analysis Software is an analytical software package developed specifically to perform CRA. Findings – Using the Hart and Milstein Sustainable Value Framework as a diagnostic tool, the empirical findings reveal that Asian-based companies’ CSR projects exhibit a very low degree of integration of sustainability strategies. This paper proposes a theoretical process model that explains the planned development of CSR initiatives – through a CSR tract elucidated as corporate sustainability and responsibility – a holistic management approach aimed at providing impetus for companies in Asia to pursue the goal of becoming responsible and sustainable companies. It reconciles the concepts of CSR and corporate sustainability using Hans Jonas’ ethics of responsibility as the philosophical footing. Research limitations/implications – The primary objective of this study, therefore, is to examine how companies located in Asia embrace sustainability in their CSR engagement. It stems back to the fundamental question, “How do companies in Asia manage their CSR” – i.e. as a strategic response to changing circumstances and new corporate challenges? This question drives this study’s search for empirically based conclusions on current CSR program thrusts and the advancement of sustainability strategies of firms operating in Asia. Practical implications – Building upon the empirical results gained from the above objective is the equally important goal of the study to advance Hans Jonas’ ethics of responsibility as a basis for a blueprint to a revitalized view of CSR amongst Asian firms in their pursuit to become responsible and sustainable corporations. The integration of philosophical theory adds foundational depth to the study. Social implications – Building upon the empirical results gained from the above objective is the equally important goal of the study to advance Hans Jonas’ ethics of responsibility as a basis for a blueprint to a revitalized view of CSR among Asian firms in their pursuit to become responsible and sustainable corporations. The integration of philosophical theory adds foundational depth to the study. Originality/value – This multidisciplinary study seeks to contribute to CSR literature in two ways. First, it highlights the significance of the need for empirical descriptions of firm-level CSR structures and practices that may give a more thorough account of the overall quality of business involvement of Asian-based firms on sustainability issues. Second, this investigation underscores the need for conceptual robustness to guide CSR initiatives undertaken by firms within a sustainability paradigm. A grounded theoretical model is henceforth presented in this paper to enrich the discussion on the strategic management of ecological responsibility through a holistic approach to CSR.


2011 ◽  
Vol 1 (3) ◽  
pp. 1-23
Author(s):  
Nils Peters

Subject area Entrepreneurship, Corporate sustainability, CSR, Supply chain. Study level/applicability Master's courses: Entrepreneurship, Strategic management. Case overview In 2002, potential risks deriving from emerging normative demands in the CSR debate prompted Axel Springer (AS) to rethink their supply chain strategy for Russian wood. Being one of the first movers in CSR in the publishing business, AS realized that current practices could spark future public discussion that might put pressure on AS, a key player in these supply chains. In early 2002, AS and one of their main suppliers, Stora Enso, started a joint initiative to redesign the supply chain processes in two of the major Russian logging regions to improve their social and ecological performance. Sometime later, other major players in the publishing sector as well as critical reviewers from several non-governmental organizations (NGOs) were invited to participate in the design of the new voluntary sustainability initiative called “Tikhvin Chalna project”, the second phase of which was accomplished by the end of 2006. Expected learning outcomes Learn that organizations (specifically high-brand owners) are responsible for practices within their entire supply chains (social as well as environmental performance). Explore proactive corporate sustainability, CSR strategies are market but also institutional driven; Strategizing involves forming and transforming the rules, norms and standard models of customers as well as institutions such as NGOs or governmental bodies. Whether the initiator of such strategy is successful in increasing or manipulating demands is dependent on its resources and capabilities as well as on its network position. The case supports students in understanding resources being used to successfully transform or create institutional arrangements. Discover that the value of a business' relationships and its network position. Supplementary materials Teaching note, Video files


2018 ◽  
Vol 26 (1) ◽  
pp. 120-134
Author(s):  
Paul Cox ◽  
Diandra Soobiah

Purpose This paper aims to report new research into how small groups of people – officers, directors and managers – are guiding the governance, design and delivery of conduct and culture programmes at UK listed banks. Design/methodology/approach The research spanned two whole years between 2014 and 2015. The method involved some 30 face-to-face semi-structured meeting interviews. A pre-agreed template was used to score and write detailed notes. From many repetitions, themes and cross-interview commonalities, a rich set of findings evolved. Findings Banks that made the most improvement during the investigation activated culture predominantly within the business. Centring the culture programme within the business was associated with a focus on the middle and the grassroots level of the organisation. Banks that made least improvement activated culture principally “from the top”. Centring the culture programme at the top was associated with a focus on control, conformance and structure. The finding of relatively greater performance when culture programmes were activated within the business contrasts sharply with recommendations from regulators and conventional wisdom that the establishment of corporate culture is necessarily a top down exercise. Originality/value Culture is intangible, and as such often overlooked, and this research contributes to that gap in knowledge through insight and evidence based on direct empirical analysis. This work ranks banks differently than published corporate governance and sustainability ranking from third-party service providers, suggesting a focus on culture performance contributes a different perspective to that based on more available public information for corporate governance.


Author(s):  
Lara Bartocci Liboni ◽  
Luciana Oranges Cezarino

Purpose – The purpose of this paper is to suggest the application of systemic methodologies, such as Soft Systems Methodology (SSM), to develop sustainability strategies and solve problems involving the sustainability of organizations and their operations. The sustainability paradigm implies the need for changes in current production systems, societal organization and use of the natural resources that are essential to all life forms. Sustainability, as a new paradigm, modifies the way in which organizations operate to make companies responsible for sustainable development and ensure that resources are available for future generations. Sustainable development requires a broad new development strategy that encompasses political, economic, social, technological and environmental dimensions. Design/methodology/approach – As a method of analysis the research will use the application of SSM in a case study from the sugarcane industry. The basic scientific thought paradigm, inherited from Bacon and Descartes, no longer holds in modern society, which requires a new way of perceiving the world by following a systemic and integrated approach to address complex problems. Findings – This study advances the understanding of how the systemic approach can aid the development of corporate sustainability strategies. Originality/value – The basic pillar of the new sustainability paradigm is the systemic view. The systemic approach should guide the development of corporate strategies. This study followed a qualitative approach to better understand how organizations can use the systemic approach in the development of sustainability strategies.


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