W9: Doing Good

BUS020X618S- Managing Innovation

Learning objectives

• To critique the impact of linear economy and profit maximization on

the environment
• To understand the key principles of circular economy
• To learn how to apply circular economy principles in innovation
• Learn what does ‘doing good’ in business mean

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How many of you think that the
way organisations are currently
doing business is harmful to the
nature and society?

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We are living in a Linear World

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Profit maximization is “the error
at the heart of corporate
leadership.” It is “flawed in its
assumptions, bad for society,
and damaging in practice”, and
in effect, “pernicious nonsense.”

Bower and Paine, Harvard Business

Review

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Rich getting richer, poor getting
poorer

• Since the financial crisis, the

number of billionaires doubled
• Between 2017 and 2018 a new
billionaire was created every 2
days
• 26 richest billionaires own as
many assets as the 3.8 billion
people who make up the poorest
half of the planet’s population

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 92%

50:50

27K/Day

1/s

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Billionaire Philanthropists

• Warren Buffett donated $37bn

(£20bn) to Bill and Melinda
Gates charitable foundation in
2006 - the largest charitable gift
ever in the US
• "This has been coming for 50
years,”... ”there's never really
been any other plan in terms of
where the money should go.”
(Warren Buffett)

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What role does kindness play in your
life?
Does kindness in business have a
future?
(Take a minute to write down your answers)

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Green generation: The power of
millennials

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Nielsen, Global Survey of Corporate Social Responsibility, 2015
Circular Economy: the new innovation paradigm
Re-thinking Progress: The Circular
Economy

“Restorative and regenerative by

design aims to keep products,
components, and materials at their
highest utility and value at all times
it preserves and enhances natural
capital, optimises resource yields,
and minimises system risks by
managing finite stocks and
renewable flows.”

Ellen MacArthur Foundation

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Ancient symbols of dynamic
balance

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The butterfly diagram

Ellen McArthur Foundation, 2018

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The rectangle of recovery

Dr Dusana Hullova BUS020X618S-Managing Innovation Source: Weetman (2017) 16

 Jessica bought this designer t-shirt
two weeks ago, worn it once, and
does not want it anymore…

In groups come up with at least 4

options she has, keeping the
principles of circular economy in
mind

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Reuse materials
1) Recovered or recycled materials
• Finding substitute for virgin materials
with recycled equivalents
• Recover own materials/by-products from
other companies
• Develop new recycled inputs
2) Renewable
• Can you design the product to use
renewable rather than finite materials?
3) Safe and secure
• How safe are the material inputs in the
product, for human health and living
systems?

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Circular product design
1) Use less
• Aim is to design out wasted materials
or inputs at every stage of process
(‘eco-efficiency’)
2) Use it more
• Use high quality materials
• Product should be easily repairable
3) Use it again
• Can you design for disassembly so that
product can be separated into technical
and biological components?

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Mimicking nature to inspire
innovation

“Biomimicry is an approach to
innovation that seeks
sustainable solutions to
human challenges by
emulating nature’s time-
tested patterns and
strategies.”

Biomimicry Institute

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 Circular Flows

1) Reuse
• How can you help to keep the products in
use for longer?
• Can you provide easy to repair
instructions?
2) Remanufacture
• Option for higher value products
• Refurbishment can include repair as well
as cosmetic improvements
3) Recycle
• How can you ensure recovery of all the
materials, ensuring your product does not
end up in landfill?
• Can you offer incentives or collection
services to users?
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Clothes as a subscription service

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Learning objectives

• To critique the impact of linear economy and profit maximization on

the environment
• To understand the key principles of circular economy
• To learn how to apply circular economy principles in innovation
• Learn what does ‘doing good’ in business mean

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Inspiration for further reading

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