S. Vishnu Sharma
IIM Lucknow study conducted by a faculty there has unveiled the critical role that the personal values of startup founders play in fostering businesses that balance profitability with environmental and social responsibility.
This study highlights how entrepreneurs driven by sustainability navigate the complexities of aligning economic objectives with broader societal and environmental goals, even under the pressure to prioritize profit alone, say sources from IIM Lucknow.
Publish
The study, published in the prestigious Journal of Cleaner Production, is co-authored by Prof. Krishna Chandra Balodi, Strategic Management, IIM Lucknow, and his research scholar, Mr. Ravi Roshan.
Values
The research emphasises how sustainability-oriented values in founders drive Sustainable Business Model Innovation (SBMI), say sources from IIM Lucknow.
For example, founders of sustainable startups frequently engage with partners who may initially lack a sustainability focus, inspiring them to adopt greener practices.
This ripple effect fosters a larger ecosystem of sustainable businesses, redefining success to include positive contributions to environmental and social well-being alongside profitability.
Research
Prof. Krishna Chandra Balodi, Strategic Management, IIM Lucknow spoke about the research.
Our research illustrates the transformative influence of founders’ sustainability values on business models that address pressing global challenges, said Prof Krishna of IIM Lucknow.
These entrepreneurs redefine success by integrating their principles into their ventures, striking a balance between profit and meaningful environmental and social impact, he said.
Suscom
The research centers on “Suscom,” a startup renowned for its sustainable practices. By delving deeply into Suscom’s operations, the study revealed that the founders’ values permeate every facet of the business—from product innovation to strategic partnerships.
These values are rooted in a blend of influences, such as family upbringing, sustainability-focused education, and early career experiences with non-profits advocating for environmental and social causes, say sources from IIM Lucknow.
Attention
The research also brings attention to the unique challenges faced by sustainable startups, such as:
Recruiting employees with a sustainability mindset: Building a workforce aligned with the company’s goals.
Eco-friendly sourcing: Procuring sustainable raw materials.
Green logistics: Finding partners who offer environmentally friendly logistics solutions.
Highlights
Despite these hurdles, the study highlights that founders committed to sustainability can overcome these barriers through:
Collaborative partnerships: Working with like-minded stakeholders.
Innovative strategies: Developing creative, low-tech production methods that minimise energy consumption and environmental impact.
Standout findings
One of the standout findings is Suscom’s use of traditional and indigenous techniques to reduce energy consumption.
These methods not only align with global decarbonisation efforts but also present an eco-friendly alternative to high-energy industrial processes, say sources from IIM Lucknow.
Significance
As businesses worldwide face mounting pressure to address sustainability and climate change, this research underscores the significance of value-driven leadership, say sources from IIM Lucknow.
It serves as a beacon for entrepreneurs to adopt sustainable practices that not only ensure financial viability but also contribute meaningfully to societal and environmental progress, say sources from IIM Lucknow.
Personal values
By offering valuable insights into how personal values can catalyse sustainable innovation, the study reinforces the need for business leaders to think beyond profits and prioritise long-term, equitable growth.
About IIM Lucknow
Indian Institute of Management Lucknow, established in 1984, is the fourth in the prestigious IIM family of management schools to be established in India after IIM Calcutta, IIM Ahmedabad, and IIM Bangalore.
In 2005, IIM Lucknow expanded its area of influence in the realm of management education by becoming the first IIM to set up a satellite campus exclusively for Executive Education at NOIDA in Delhi NCR region.
IIM Lucknow is accredited by AACSB and AMBA while its EQUIS Accreditation is ongoing. The institute features in the prestigious FT -100 Top Global Business schools for both the 2-year Flagship PGP program and One-year IPMX Program.
It is also consistently ranked amongst top business schools in the NIRF Rankings. IIM Lucknow was the first IIM to start a 2-year full time MBA program in Sustainable Management 10 years back. It also has a long-standing full-time MBA program in Agri Business Management.
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