The Circular Economy and Social Norms

Research Seminar - BBK – Management Studies -
Circular Economy & Social Norms
Empirical Perspective
in the view of conducting Academic Research
April 29, 2016
Anne-France Kennedy
E: [email protected]
@Animache
Our journey this evening
Why this research on Circular Economy & Social norms?
Our journey this evening
Why this research on Circular Economy & Social norms?
What is it about?
Our journey this evening
Why this research on Circular Economy & Social norms?
What is it about?
How to go about it?
Notes: From Simon Sinek
How great leaders inspire action
Ted Talk – May 2010
Our journey this evening
Why this research on Circular Economy & Social norms?
What is it about?
How to go about it?
My aim: Sharing your views and experience on the what and How?
Notes: From Simon Sinek
How great leaders inspire action
Ted Talk – May 2010
Our respective Expectations
What I would like to get out of our collective session this evening?
Our respective Expectations
What I would like to get out of our collective session this evening?
What would you like to get our of this discussion?
Why am I here today?
Professional Activities : New Ventures
Energy Efficiency Digital Solutions
Business Eco-system
Where Executives
& Entrepreneurs thrive
Why this research ?
Find a route to establishing organic sustainable growth
for the benefits of
People, Planet and Business (not profit)
Inspired by qualitative research on CSR
Corporate Social Entrepreneurship:
“the ways in which individuals both limit
organisational misdemeanours and champion
social agenda in the context of profit making”
CSR = motivated by an altruistic impulse driven by managers’ personal
values, in addition to the more obvious economic and macro political
drivers for CSR
What?
https://www.weforum.org/pages/circular-economy-videos
Circular Economy: Complex but holistic
Benefits of the Circular Economy
Growing influence from: William McDonough (US architect), Michael Braungart (German Chemist) - 2002
Cradle to Cradle – Remaking the Way we make things
Biological nutrients = materials that can re-enter the environment
Technical nutrients = materials that remain within closed-loop industrial cycles
Benefits of the Circular Economy
Changing the fundamentals of businesses:
“How much can I get for How little I give”?
Benefits of the Circular Economy
Changing the fundamentals of businesses:
“How much can I get for How little I give”?
to
“How much can we give for all that we get”?
Circular Economy: Active actors in the U.K
Wrap: Waste & Resources Action Programme
Tackling specific industries
- Food and Drinks
- Clothing and textile
- Electricals and Electronics
To target: 25% of UK Carbon footprint, 80% of UK
water footprint, 40% of UK household waste
Ellen Macarthur Foundation
The “Narrative” on Circular Economy
Creating Advantage in a Circular Economy,
prove this model offers a way forward out of the limits
of our “Take, make and dispose” system and
create a sense of urgency as to why businesses need to start
– today –
to re-perceive their own business models
through the lens of the Circular Economy
Sir Ian Cheshire – Former Group CEO, Kingsfisher plc – January 2015
Senior Independent Director at Whitbread
More supportive Managerial Environment
Better Business for Better Society
Supportive Innovative trends
Sharing or Collective Economy
Sharing or Collective Economy
Sharing Economy
Circular Economy
• Extends the product way of life
(i.e circular)
• Based on production and
consumption relations
• Based on Human
relations/individualneeds
• Underutilisation to have an
impact on natural resources or
environmental
• Underutilisations of assets or
skills
BlaBla Car
BlaBla Car
Circular Economy – Reflections
1. Still a specialist, niche, concept (for those who are “In the Zone”)
Circular Economy – Reflections
1. Still a specialist, niche, concept (for those who are “In the Zone”)
2. Narrative to scalability perceived as limited to technology issues
Circular Economy – Reflections
1. Still a specialist, niche, concept (for those who are “In the Zone”)
2. Narrative to scalability perceived as limited to technology issues
3. Still operationally limited to “good management practices”
Circular Economy – Reflections
1. Still a specialist, niche, concept (for those who are “In the Zone”)
2. Narrative to scalability perceived as limited to technology issues
3. Still operationally limited to “good management practices”
4. A jump in the unknown
Circular Economy – Reflections
Is promoted and limited to key individuals who are
Circular Economy – Reflections
“We expect that a generation of
young people who increasingly prefer
access to ownership get older”
(Waste to Wealth, p114)
Circular Economy – Reflections
“We expect that a generation of
young people who increasingly prefer
access to ownership get older”
(Waste to Wealth, p114)
A Social Dilemma
How to solve the Social Dilemma?
“The problem is still that people think it is an ethical or social think
to concentrate on the circular economy but it is not about ethical responsibilities.
It’s about business responsibility.”
Dr Michael Braungart, Nov 2013
From Why to How?
Why?
Find the route to establishing organic sustainable growth for the benefits
of People, Planet and Business (not profit)
From Why to How?
Why?
Find the route to establishing organic sustainable growth for the benefits
of People, Planet and Business (not profit)
What?
The Circular Economy
From Why to How?
Why?
Find the route to establishing organic sustainable growth for the benefits
of People, Planet and Business (not profit)
What?
The Circular Economy
How?
Solving the Social Dilemma
Is it about Trust?
Is it about Social Norms?
Or something else?
Attendees contribution
How could we solve the Social Dilemma?
Trust?
Social Norms?
Anything else?
Social norms: Introduction
“Rules
and standards that are understood by members of a group
and that guide and/or constraint social behaviour
without the force of law”
(Cialdini and Trost 1998, 152)
Social norms: Introduction
2 main characteristics
- Need to be shared by others and need to be communicated to all the members of the group
- Derive from social interactions hence their violation will be punished not through the law but through social
sanctions
Social norms: Introduction
2 main characteristics
- Need to be shared by others and need to be communicated to all the members of the group
- Derive from social interactions hence their violation will be punished not through the law but through social
sanctions
Can be
- Descriptive
- Prescriptive
- Subjective
(Coleman, 1990)
Microfinance Village bank
Social norms: Connecting the dots
Social Capital
Social norms: Connecting the dots
Social Capital
Community Governance
Social norms: Connecting the dots
Social Capital
Community Governance
Social Cohesion
Social norms: Connecting the dots
Social Capital
Community Governance
Social Cohesion
Informal Institutions
Social norms: Connecting the dots
Social Capital
Community Governance
Social Cohesion
Informal Institutions
CPR management = Common Property Ressources
“Trust and a shared willingness to live by norms are key factors determining how
efficiently common property ressources are used”
(Bulte and Horan, Identities in the Commons: The Dynamics of Norms and Social Capital, 2010)
Social norms: Connecting the dots
Social Capital
Community Governance
Social Cohesion
Informal Institutions
CPR management = Common Property Ressources
“Trust and a shared willingness to live by norms are key factors determining how
efficiently common property ressources are used”
(Bulte and Horan, Identities in the Commons: The Dynamics of Norms and Social Capital, 2010)
Cultures: More or less trustworthy /Individualistic vs Collectivistic
Social norms: Connecting the dots
Social Capital
Community Governance
Social Cohesion
Informal Institutions
CPR management = Common Property Ressources
“Trust and a shared willingness to live by norms are key factors determining how
efficiently common property ressources are used”
(Bulte and Horan, Identities in the Commons: The Dynamics of Norms and Social Capital, 2010)
Cultures: More or less trustworthy /Individualistic vs Collectivistic
Personal Values: Personal values are based on the notion that people have an intrinsic motivation
to behave cooperatively by following “moral” or “social norms” (Dowell et al, 1998. Lindbeck 1997)
Ethics
Social norms: Connecting the dots
“Why
do people forego private gains for the public good?”
“Why would people forego private gains for the public good?”
Existing Social norms: not ready to support a
functioning Circular Economy
FlooW2 – B2B Sharing platform for construction equipment (diggers, tractors etc..)
Kim Tjoa Founder:
“the main barrier (for FLOOW2) is the required mind-set shift to scale our business. Right now companies
See renting out assets to other companies as unfamiliar, as a risk instead of a chance. The opportunities for revenue and
Utilization of assets are not recognized enough” (p 89)
Social norms: A touch of theory
Pro Self vs Prosocial (Bogaert et al, 2008) - The concerns of people towards others’ preferences
Social norms: Nobody is alike
There are different “types” within populations
– some more inclined to cooperation
and others more inclined to defection
(Bulte and Horan, Identities in the Commons: The Dynamics of Norms and Social Capital, 2010)
Insights of qualitative Research
Results of the exploratory study: Research context – The headquarters of Brayford Health International, a
UK-based multinational corporation (single case study)
Dominant self-transcendent personal values
Unsupportive culture:
Feel less enabled
Concealed
C.S.E
Active
Corporate Social
Entrepreneur
Disassociated
Conformist
Dominant self-enhancement personal values
Source: Christine A. Hemingway - Corporate Social Entrepreneurship – Integrity within 2013, 131
Supportive culture:
Feel more enabled
Insights of qualitative Research
Results of the exploratory study: Research context – The headquarters of Brayford Health International, a
UK-based multinational corporation (single case study)
Dominant self-transcendent personal values
Concealed
C.S.E
Unsupportive culture:
Feel less enabled
Disassociated
Active
Corporate Social
Entrepreneur
Conformist
Dominant self-enhancement personal values
Source: Christine A. Hemingway - Corporate Social Entrepreneurship – Integrity within 2013, 131
Supportive culture:
Feel more enabled
Modes of Moral Commitment to CSR
Results of the exploratory study: Research context – The headquarters of Brayford Health International, a
UK-based multinational corporation (single case study)
Key findings:
“The four mode of moral commitment to CSR mediate organisational constraints
and enablements in quite a distinctive way”
Source: Christine A. Hemingway - Corporate Social Entrepreneurship – Integrity within 2013, 131
Modes of Moral Commitment to CSR
Results of the exploratory study: Research context – The headquarters of Brayford Health International, a
UK-based multinational corporation (single case study)
Key findings:
“The four mode of moral commitment to CSR mediate organisational constraints
and enablements in quite a distinctive way”
Conclusions:
practical considerations and recommendations for the development of integrity within organisations
and their employees (p 208)
Source: Christine A. Hemingway - Corporate Social Entrepreneurship – Integrity within 2013, 131
Modes of Moral Commitment to CSR
Results of the exploratory study: Research context – The headquarters of Brayford Health International, a
UK-based multinational corporation (single case study)
Key findings:
“The four mode of moral commitment to CSR mediate organisational constraints
and enablements in quite a distinctive way”
Conclusions:
Her study led to practical considerations and recommendations
for the development of integrity within organisations
and their employees (p 208)
Key recommendation:
“the need to make it everyone’s business” (p 209)
Source: Christine A. Hemingway - Corporate Social Entrepreneurship – Integrity within 2013, 131
Circular Economy & Social norms:
Insights & Reflexions
Potential mechanisms to align social and private incentives are:
- Reputation effects
Circular Economy & Social norms:
Insights & Reflexions
Potential mechanisms to align social and private incentives are:
- Reputation effects
- Monitoring and punishment by peers
Circular Economy & Social norms:
Insights & Reflexions
Potential mechanisms to align social and private incentives are:
- Reputation effects
- Monitoring and punishment by peers
- Future gains from cooperation
(Ostrom, 1990, Ostrom et al. 1992 1994, Sethi and Somanathan, 1996, Mailtah and Samuelson 2006)
Circular Economy & Social norms:
Insights & Reflexions
Key recommendation:
“the need to make it everyone’s business”