Introduction
Many companies are now taking the concept of corporate social responsibility and environmentalism serious. This is due to the understanding that a company has to do a lot more than just focus on making profits. The stakeholder orientation of businesses imply that there are social and environmental implications for every action a company undertakes. The purpose of this paper is to focus on the concept of Eco Innovation. This will include the presentation of a briefing for business leaders about the importance, opportunities, challenges and strategies that relates to eco-innovation. This will include the presentation of a case study on Unilever that relates to eco-innovation in the real world.
This section of the research will examine what exactly is eco innovation. There are numerous facades and definitions of the concept. One definition states that eco-innovations are “innovations on technologies, directly linked to environmental protection”. These are the innovations that are made in order to enhance the environmental protection abilities of a given system or product. This is a broad and major definition that has various facades and is complemented by different ideas and definitions.
“Innovation corresponding to the development and/or adoption by one or more organisations of technological or organisational changes in the production of goods and services, or even in the use and treatment at their end of life of products, with a view to better preservation of the environment”.
The definition above shows that eco innovation is about new ways and modern methods that is used by an organisation to change its production system or its products. This includes anything that is added to a product or removed from a product in order to make it more environmentally friendly and less destructive to the natural environment. This is about improvement and continuously enhancing and promoting better features that will make a product or production system function better.
Many different facades and perspectives can be identified and critiqued to understand the concept of eco innovation. Some authorities identified four main dimensions, namely:
New or improved use of environmental resources;
Removal of harmful environmental toxins;
Recycling;
Efficient use of energy
The first element includes the utilisation of better resources from the environment. This could be the case of a situation whereby a company uses renewable resources instead of exhaustible resources. This way, the company uses innovation, research and development to identify and utilise something better and more productive in its activities. Secondly, the removal of harmful features include the elimination of things that will make the product negative and destructive. This causes emissions to be controlled and the product undertakes its activities with little or no environmental footprints.
Recycling means using the same products in different useful forms without having to create more burdens to the environment. This process is positive and promotes better use of resources without destroying so much life forms and extracting more from the environment. Finally, the efficient use of energy has to do with the research into alternative forms of energy in order to find better means of doing things and carrying out activities with better emissions and more appropriate methods. This is usually about finding cleaner energy and more efficient means of producing and consuming the energy. This makes sure that there are improved means and procedures for carrying out actions in a more responsible fashion.
Another perspective presented by Laperche et al (2012) is that eco innovation revolves around the removal of pollution and inclusion of resource-handling technologies. The implication is that these technologies are more efficient and they cause less pressure and stress for the natural environment.
Eco-innovation covers all technologies, products and services, which are more environmentally benign than relevant alternatives. In other words, eco-innovation finds a relatively better impact and relies less on the environment than the alternatives available. This shows a commitment to continuously improve the energy production systems and processes in order to attain better results and more appropriate measures for the production of products and services and final products that are offered to consumers. Eco-innovation therefore goes beyond just producing through crude methods, but also identifies better methods and ways of doing things in ways that preserves the best interests of all stakeholders.
Opportunities in Eco-Innovation
There are numerous opportunities that come with eco-innovation. This include a wide array of possibilities that help a business directly and others that contribute indirectly. The institution of eco-innovation leads to easier compliance to regulations. This is because environmental regulations evolve over time. They come up as and when the authorities of a nation make new rules and add up to existing regulations. Undertaking a conscious effort towards eco-innovation means that a company can stay ahead of the regulations and will be able to voluntarily change and do things that will make them stay within anticipated rules and regulations relating to environmental regulations.
Secondly, the reputation of a company is enhanced when it undertakes eco-innovation. This means that a company will be able to work with many stakeholders and deal with things in ways that promotes its image and enhances the brand. There are also efficient operations that are guaranteed when a company is able to undertake eco-innovation.
Furthermore, eco-innovation enhances the competitive advantage of a firm . This is based on the premise that a company that undertakes eco-innovation gets an urge over its competitors. This is because it is going to have some positive results that competitors are not likely to have in the short-run and as such, can lead the market into the future.
There are other opportunities for companies to invest in eco-innovation for the attainment of better technologies and results. One of the methods for doing this is through co-ideation and entrepreneurship which can make the company a champion of eco-innovation. This is to be done through the integration of eco-innovation into the strategy of the company in order to lead to growth potential and enhancement of the operational activities of a company through better and more innovative methods and systems.
Also, when a company is able to innovate or put money into eco-innovation, they are able to get stocks and authorities in the development of cleaner resources. Co-innovation involves joining teams, projects, joint-ventures and public-private partnerships with the hope of developing better and more sustainable methods of environmental activities. This is a process where a company gets some associates and partners in order to work with them to attain results. This is something that is positive and promotes returns on investment through these partnerships and projects.
There is also the opportunity for co-institutionalisation, where a company partners with public sector authorities to promote environmental responsibility and co-innovation. The procedure is about creating a process whereby market and society are merged. There is the presentation of knowledge and technology as well as policy and regulation in order to reinforce the demand for sustainability.
Challenges of Eco Innovation
There are several challenges that come with the institution of eco-innovation. This is because most companies view eco-innovation as something that is different from the core operations of a company. This implies that some leaders and directors view eco-innovation as a waste of money and are sceptical about it. Hence, the fundamental challenge to eco-innovation is to prove that the proposed innovation promotes returns on investments .
There are also regulatory challenges that come with eco innovation because it has to be done within the relevant laws. Although regulations might induce eco innovation, it could also stand in the way of innovation. Therefore, it is necessary for regulatory challenges to be identified and dealt with. There framework of regulatory challenges include environmental legislation, major project status, local land use provisions.
There is also an issue of how a company can seek profitability through eco-innovation. This is because any project in a modern business will have to pay for itself and a company expects to at least break even from undertaking a particular eco innovation project. Therefore, there is the need to find ways of seeking profitability through accurate calculations, integrating the proposed eco-innovation project into pre-existing eco-innovations, life cycle evaluation and valuation of customer appreciation of the eco-innovation. These are things that require forecasting, accurate evaluations and analysis and others that will ensure that there are accurate commitment of resources to projects for the attainment of results.
Also, there is the centrality of research and development in ensuring that eco innovation is instituted and carried out. This is based on the fact that there is the need to critique and understand what a company is going into. This is often done through an approach of pure research. And such methods could be destructive and unproductive. It requires a lot of evaluation and analysis that might be missing in some situations and contexts. This also comes with some degree of the integration of green philosophy to the production process in order to attain optimal results.
Strategies in Eco Innovation
There are several approaches and methods that are utilised in eco-innovation and this is carried out in various ways and forms. El-Haggar and Elkersh (2015) identify these eight points which are seen to be popular methods and processes for the attainment of eco-innovation throughout companies around the world.
Identification of Problem
Eco-innovation is always done to solve a particular and specific problem. This is done by evaluating what new thing or improved system that will occur within the proposed project. This is usually from a particular problem or some situation that exists which demands attention. Thus, there must be a way of figuring out what kind of solution a particular eco-innovation proposal will meet. This guides the stakeholders and provide the basis for the identification of the way of going about the entire process.
Terms of Reference
Once a problem and its related solution is found, there is the need to define the specific limits and scope within which an eco-innovation drive will occur. This shows the kind of persons and the kind of resources that will be committed to a project. This terms of reference include the presentation of a framework within which particular processes are done in order to resolve a particular problem. Therefore, the resources to be used, project team and relevant stakeholders are identified within the terms of reference and the actual task and its stages are identified.
Authorisation
When the terms of reference is presented, there is the need for the authorisation of the entire project by the topmost management. This usually goes to the board of directors for approval because it often requires external partners and other things. The authorisation lead to the identification of the best way of dealing with the situation and the identification of what the company will do. With the authorisation, it can be said that the project will be completed appropriately within the legal power of the directors.
Funding
When authorisation is done, there is the allocation of funds and resources for the project. This provides the actual basis for the commencement of the project. Funding is done through the presentation of resources to project leader and authorised parties. There is the conduct of activities that ensure that the project meets its goals and expectations.
Product Development
Eco-innovation often comes with a specific product. This product is developed and done according to specification by the project team. The team comes up with different parts and units and this leads to the identification of what the final deliverable will be. When things are advanced and a proper prototype is available, there is the delivery and it is sent to the appropriate authority for evaluation.
Testing
The product will have to be tested to ascertain if it meets the needs and goals for which it is created. This comes with the identification of the main issues and problems and matters. The procedure leads to the documentation of important trends and procedures. This testing result is put together and there are major trends and patterns that are found. Where there are issues, they are resolved through remedial actions that are carried out to make the product or final deliverable better.
Pilot Implementation
Then there is the pilot implementation of the new product within the new eco-innovated space. This is a limited application of the new technology to some aspect of the company. The implementation is closely observed and the main elements and trends are found and documented. This guides for future application and implementation throughout the company.
Actual Implementation
The actual implementation of an eco-innovation is done through the application of the new technology throughout the organisation. This is done through the institution of the eco-innovation as a new and standard part of the company’s operation or a subsidiary’s operation or product. Therefore, new ways are adopted across board. They provide a major way of doing things and this helps to ensure that there is implementation throughout the company and goals are met in various ways and forms. This is also monitored and there are improvements and enhancements which are undertaken as and when the time comes and there is the need for these changes and modifications.
Unilever – eco-innovation involved since 1930
Found better methods and processes
Better production, health of consumer
Constant research unit
Sustainable Living Plan – launched for eco-efficient production, consumers’ health, hygiene and products
References
Birkeland, J., 2012. Design for Sustainability: A Sourcebook of Integrated, Eco-logical Solutions. London: Earthscan.
Bossink, B., 2013. Eco-Innovation and Sustainability Management. 2nd ed. New York: Routledge.
Bryan, C., 2014. Handbook of Research on Global Business Opportunities. 2nd ed. New York: IGI Publishing.
Carrillo-Hermosilla, J., del Río González, P. & Könnölä, T., 2015. Eco-Innovation: When Sustainability and Competitiveness Shake Hands. 3rd ed. New York: Springer.
El-Haggar, S. M. & Elkersh, H., 2015. Sustainability and Innovation: The Next Global Industrial Revolution. Oxford: Oxford University Press.
Freeman, E., Harrison, J. & Wicks, A., 2010. Stakeholder Theory: The State of the Art. Cambridge: Cambridge University Press.
Fussler, C., 2012. Driving Eco-innovation: A Breakthrough Discipline for Innovation and Sustainability. 4th ed. London: Pitman Publishing.
Kinnear, S., Charters, K. & Vitartas, P., 2013. Regional Advantage and Innovation: Achieving Australia's National Outcomes. 2nd ed. London: Springer.
Laperche, B., Levratto, N. & Uzunidis, D., 2012. Crisis, Innovation and Sustainable Development: The Ecological Opportunity. Surrey: Edward Elgar.
Organization for Economic Cooperation and Development, 2013. Eco-Innovation in Industry Enabling Green Growth: Enabling Green Growth. 2nd ed. New York: OECD Publishing .
Singh, L., Joseph, K. J. & Johnson, D., 2015. Technology, Innovations and Economic Development. London: SAGE.
Wilner, T., 2011. Unilever: Eco-Innovation Case Studies. [Online] Available at: http://www.environmentalleader.com/2011/11/01/unilever-eco-innovation-case-studies/[Accessed 21 August 2016].
.
