5.2 Impacts of Circular Economy Implementation on Organizations 113
113
5.2.2.2.3 Sub-Category 1: Brand Trust
As a last aspect related to reputation, brand trust is identifi ed. Researchers came to
the conclusion that brand trust infl uences important variables such as consumer
loyalty and purchase intention (Chaudhuri and Holbrook 2001). Th is literature fact
supports the fi nding of this analysis that the creation of brand trust has a positive
impact on organizations. By committing to circular economy and implementing the
chosen circular economy approaches organizations show reliability and sincerity.
Th ese are two important facets of trust and therefore might lead to the eff ect of
purchase loyalty as shown in the results of a study by Chaudhuri and Holbrook in
2001 (Chaudhuri and Holbrook 2001). Case Iota sees a benefi t in building trust for
the brand by making smart decisions on material use, taking care of waste streams
and manufacturing their products in a certain way. Th e corporate representative
forms it as follows: “But in terms of what benefi ts we can see, primarily this is if you
are going to look at it from the purely market-based external perspective, it is about
brand trust so it is about people saying that looking holistically at what case Iota
[changed by interviewer] does: they are making smart decisions about the material
they use, how they manufacture their products, how they take account for their waste
streams, and what the next life is that their product should be. All of that in my mind
reinforces the confi dence that somebody has in us when it comes to designing and
manufacturing garments. So it becomes an opportunity to demonstrate how the
brand is doing its work eff ectively.”
5.2.3 Discussion on Impacts of Circular Economy
As concluding remark on the chapter of impacts of circular economy implemen-
tation on organizations three dependencies between the impacts, as depicted in
Table 21, are elaborated in this chapter.
Table 21 Dependencies between impacts
# Impact 1 E ff e c t Impact 2 E ff e c t
1 Competitive Advantage
& ReputationRevenue2 Reputation Competitive Advantage3 Costs Competitive Advantage