Sustainability creates business and brand value

Abstract

This paper discusses the journey of Royal Philips Electronics on integrating sustainability in its businesses and processes to create value for its stakeholders, considering specific products from its consumer lifestyle division. It takes you from the origins of the company, as a frontrunner providing healthcare and schooling for employees, through eco-design initiatives, to integrating sustainability in the company's strategy. A strategy based on increasing the human development and decreasing the global ecological footprint. Different markets and stakeholders perceive sustainability differently, asking for a tailored approach according to local needs. Therefore, sustainability can be a driver for creativity and innovation, enabling customised solutions that address both functional and the emotional aspects. Finally, the paper mentions that what differentiates an organisation as a sustainability leader is its capability to partner up with stakeholders along the value chain, including governments and non-governmental organisations, developing new measuring standards, business models and reward systems.