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Systematic Review - Network for Business Sustainability

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In Practice<br />

The contribution of long-term collaboration between<br />

NGOs and companies to enable sustainable business<br />

practices is widely recognized.<br />

In Practice<br />

In the development of the Tata Nano,<br />

the early integration of suppliers into the<br />

NPD process facilitated their input into<br />

component design, led to substantially lower<br />

costs and helped eliminate unnecessary<br />

frills while incorporating features valued by<br />

mass markets. 7 Adapted from Ray and Ray<br />

(2011).<br />

The conservation group World Wildlife<br />

Foundation (WWF) has adopted a series of<br />

collaborative and challenging partnerships<br />

with business. It provides companies<br />

insights into sustainability challenges and<br />

approaches, and helps create stakeholder<br />

engagement opportunities to support<br />

business becoming more resilient. It<br />

works with individual companies and<br />

across industry sectors, bringing together<br />

consumer groups, policy makers and<br />

investors to help drive systemic change.<br />

WWF’s business partnerships include<br />

HSBC, Marks and Spencer, Unilever,<br />

Lafarge, Nokia, Coca-Cola, Barclays, BT,<br />

Vodaphone, Tetra Pak, SABMiller and IKEA.<br />

Adapted from Bendell (2000); Elkington<br />

(1998); and Wymer & Samu (2003).<br />

3. New innovation plat<strong>for</strong>ms can be tested: e.g.<br />

reverse innovation, jugaad innovation and resourceconstrained<br />

innovation<br />

The principle of co-operation is greatly extended<br />

by firms experimenting with sustainable innovation<br />

in bottom-of-the-pyramid (i.e. low socioeconomic)<br />

markets. The value of co-operation is recognized by<br />

exponents of “reverse innovation” (a trickle-up effect,<br />

where innovations are first used in developing countries<br />

and then applied in developed countries) and “frugal”<br />

or resource-constrained innovation (a strategy whereby<br />

resource inputs are minimized, thereby reducing the<br />

end product’s cost without loss of quality). The latter<br />

approach is also referred to as “jugaad innovation,”<br />

from a Hindi word that translates roughly as “an<br />

innovation fix,” referring to harnessing ingenuity to<br />

locate opportunities and improvise simple solutions<br />

(Radjou et al., 2012). See Appendix 6 <strong>for</strong> examples and<br />

Appendix 3 <strong>for</strong> definitions.<br />

These novel collaborations are not well understood,<br />

particularly regarding an organization’s place in<br />

systems-level co-evolution of a sustainable society<br />

(Loorbach et al., 2010). However, co-operating with<br />

environmentally neutral stakeholders or “naysayers”<br />

may constrain firms in achieving their sustainability<br />

objectives (Wagner, 2007), and firms may need to<br />

create new networks of relationships of willing players<br />

outside of established vested interests (Klein Woolthuis,<br />

2010).<br />

7 The Tata Nano has been critiqued by some environmental NGOs <strong>for</strong> its lack of green credentials. However, by making available a car to people<br />

<strong>for</strong> whom cars were previously not af<strong>for</strong>dable, the Nano arguably addresses the social equity dimension of sustainability. The case illustrates the<br />

frequent difficulty reconciling the three pillars of the Triple Bottom Line.<br />

Innovating <strong>for</strong> <strong>Sustainability</strong> 39

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