Exploratory Study on Circular Economy Approaches A Comparative Analysis of Theory and Practice

5.2 Impacts of Circular Economy Implementation on Organizations 111

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Analysis of the empirical data of this study results in three distinct aspects

related to brand reputation: generating positive brand image, managing risks and

building brand trust.

5.2.2.2.1 Sub-Category 1: Positive Brand Image

The creation of a positive brand image is one major positive effect of the imple-

mentation of a circular economy (as stated in cases Alpha, Gamma and Beta). The

engagement in a circular economy completes the company’s visions, and therefore

forms a certain image of how the organization wants to be seen. Some customers

appreciate the resulting brand image and value the commitment in such a way

that they are even willing to pay more for these special products. Representative

of case Alpha describes it as follows: “The only economic benefit we get is that the

customers appreciate our commitment. And again that comes to education: the more

people that are familiar with the program and get involved in recycling, presuming

those people are also willing to pay a premium for a product that uses a closed-loop

recycling technology, the better it is.”

The establishment of such a positive brand image in the market further creates the

advantage of additional customers as mentioned by the interviewee of case Eta: “We

not only created a brand image for being representative for this topic on the market,

but we also acquired new customer groups. New customers who not necessarily are

interested in an outdoor brand but are interested in the green lifestyle, LOHAS etc.”

(see Appendix: German Quote 47).

More citations underlining the fact that the commitment in a circular economy

has a positive effect on the brand image are provided in Table 20.

Table 20 Citations on creation of a positive brand image

Gamma

“I think it is beneficial for our public image to have it. It is not the main reason why

customers buy our products but it is the icing on the cake and expresses how we would

like to be seen by our customers” (see Appendix: German Quote 67).

Zeta

“Of course there is the topic of reputation management and also the positive effect on

the brand image but these topics are very difficult to measure and to express in concrete

figures” (see Appendix: German Quote 68)

Eta

“Today it is for us positive publicity because we have been the first mover and this is

appreciated by the customers” (see Appendix: German Quote 69).