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

(Rick Simeone) #1

78 4 Case Description and Within-Case Analysis


in a certificate provided by a third party. This certificate enables the organization


to make their commitment transparent to their customers.


The second motivation is the belief in the benefits of the concept. This led to the

implementation of the Cradle-to-Cradle concept instead of the many other concepts


that exist. Reason is it ensures reusing material that retains its quality when used


over and over again, as explained in this citation: “The objective was to be able to


recycle and reuse material without losing it quality. This was what motivated us


and is why we produced our whole product portfolio according to this standard after


2010” (see Appendix: German Quote 28). The Cradle-to-Cradle concept includes


the whole lifecycle.


Furthermore, the organization sees great benefits for themselves, the environment

and the customers in pursuing this concept. The benefit for the organization stems


from the reusable resources which can be refurbished and reused endlessly without


almost any additional effort. For the environment, the benefit is that the ingredients


are either biodegradable or reusable and so further exploitation of nature can be


avoided. Customers benefit from healthy products and potential cost savings, e.g.


when giving back the old product and buying a new one at a lower price.


4.7.3 Challenges for the Implementation


The first challenge which has been mentioned several times throughout the interview


is lack of customer education. Prices for circular products tend to be higher than for


conventional products. Reason for that are e.g. development effort, low production


volumes or higher prices for the resources. Currently customers are unaware of the


benefit of circular products and are not willing to pay more for them. Therefore,


customer education is necessary to highlight the benefits of a circular product,


such as pollutant free, non-toxic and only non-hazardous ingredients in order to


justify higher prices. The company representative forms it as follows: “The problem


is that customers are not educated. When I am talking to potential customers and I


confirm that cradle-to-cradle products are absolutely free of toxic material (...) they


become interested” (see Appendix: German Quote 29).


Another aspect why educating customers is important is that today several

different certificates exist in the context of sustainability and green production, as


described in the citation: “In addition, there are too many certifications like ‘Blauer


Engel’ and so on which suggest all [products] are ecological and sustainable. Because


there are so many certifications, it is difficult to know what exactly each certification


stands for and how it can be manipulated” (see Appendix: German Quote 30). Without


any deeper knowledge about them it is hard to identify any differences. To avoid

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