Did you know?
CSR efforts and initiatives frequently reduce the use of water, energy and resources, as well as leading to more employee engagement. So, ecological wins go hand in hand with economic wins. In addition, consumers, investors and venture capitalists attach ever more importance to sustainability.
Corporate Social Responsibility (CSR) refers to organizations taking responsibility for the effects of their decisions and activities on society and the environment, by working ethically and transparently.
CSR requires organizations to pay careful attention to human rights, consumer interests, and social, ethical and environmental issues in both their activities and their core strategy, and to collaborate closely with stakeholders.
CSR consistently strives for economical (Profit), social (People) and environmental (Planet) improvement – a strategy also referred to as the ‘triple P bottom-line’.
Circular business practices are an important component of the ‘Planet’ pillar of CSR. Circularity is a way to put CSR into action, particularly when it comes to raw materials and production, by:
If we want to stay below the European 1.5°C global warming threshold, companies have to sell at least one in five garments via circular business models by 2030, according to McKinsey (2020).
CSR is a process, not an outcome. The specific challenges you face will change in time and with each strategic decision you make. In other words: while you may know your starting point, your endpoint is less clear.
No idea what your starting point is exactly? No worries: the Close The Loop Planner will help you analyze your current situation and identify short-term and long-term actions for improvement. We introduce this tool in the third strategy below. It will surely come in handy!
Dive into this part to discover how you can incorporate circular and CSR practices step by step, so sustainable entrepreneurship …
Circular business models may have even more positive effects than you think, according to the Circular Economy Living Lab Recare About Shoes. The project was carried out by KU Leuven in collaboration with LUCA School of Arts, with support from VLAIO and in partnership with various organizations, including Omvorm, Ambiorix, CYCLEUR de LUXE, Torfs and Flanders District of Creativity. There are direct benefits, such as revenue from maintenance products, repairs and secondhand sales. But the indirect benefits are just as important. The researchers mention:
CSR is logical and intuitive. A no-brainer, really. Yet it does come with a certain vocabulary, which you should familiarize yourself with at the start of your CSR initiative.
That’s why this first strategy introduces the terms you need in order to navigate the world of CSR and sustainability.
Your organization is embedded in society, influencing – and being influenced by – other organizations and companies, groups and individuals. We call them stakeholders.
Examples? Employees, customers and suppliers immediately come to mind. But governments, NGOs, investors, trade unions, your banker, the community and the media are also stakeholders.
CSR involves continuous stakeholder dialogue. Identifying your stakeholders, listening to them and getting them involved are a must for any organization that takes its social responsibility seriously. The process of mapping your stakeholders’ interests and influence, and working with this information, is called stakeholder management. It will help you gain a better understanding of where your brand can have an impact, and of the importance that your stakeholders attach to the difference you’re making.
Sustainable Development Goals (SDGs) are a series of universal sustainability goals, passed unanimously by the UN in September 2015. By signing the ‘2030 Agenda for Sustainable Development’, all 193 UN members committed themselves to using the SDGs as the framework for their 2030 sustainability strategy.
The Sustainable Development Goals comprise seventeen primary targets, 169 secondary targets and a wide range of specific indicators, subdivided into five categories (People, Planet, Prosperity, Peace en Partnerships) and covering various themes. The SDG website of the United Nations gives you an overview.
You, too, can contribute to achieving the SDGs by making sustainable choices and taking sustainable actions. Do you prefer to start from your organization and your own sustainability goals? That’s just as well. In that case, you can use the SDGs as a final check. Try to link every goal you set yourself to an existing SDG.
The circular economy maximizes the reusability of products and resources, while minimizing value destruction. In other words, the goal is to retain the value of everything that is valuable and let nothing go to waste.
This attitude contrasts sharply with the current linear system, in which resources are turned into products that are destroyed at the end of their lives.
The transition from a linear to a circular economy is high on the political agenda worldwide. Flanders doesn’t lag behind: to prioritize the circular economy, the Flemish Government launched Circular Flanders as a crucial part of its Vision 2050 strategy.
Openness, visibility and accessibility: these organizational characteristics rock the world of CSR and sustainability.
By giving insight into the choices you have to make – how and why you make them, and with what consequences – stakeholders are able to keep a closer watch on your activities, but they can also contribute ideas and suggestions for improvement. That’s why transparency often spurs innovation.
In addition, transparency ensures that your customers (and society as a whole) know what you stand for. It enables you to account for your business operations.
Cradle to Cradle Product Design - free online course
The Cradle to Cradle Products Innovation Institute offers an online course that explains how to design for a circular economy.
The course is a…
Read more
MVO Vlaanderen (CSR Flanders)
Go to the website of MVO Vlaanderen (CSR Flanders) to find out all there is to know about corporate social responsibility.
Read more
Tools for entrepreneurs
Higg Index - Sustainable Apparel Coalition
De Higg Index is a tool developed by the Sustainable Apparel Coalition for the purpose of measuring…
Read more
Trainings and workshops
Royal College of Art (London) Textiles Programme
The Royal College of Art or RCA is a public research university in London that offers 29 dis…
Read more
Organizations, nonprofits, research and learning centers
Subscribe to the newsletters or follow these organizations on social media:
Belgium:
Netwerk Bewust Verbruiken
Schone Kleren Cam…
Read more
Terminology
Bio-eco-vegan-fairtrade … What’s in a name? When you’re lost in semantics, make sure to check the website of Eco Fashion World or the glossary of …
Read more
Worth watching
De slag om de klerewereld - VPRO (in Dutch)
Sweatshop Deadly Clothes - Joakim Kleven
The True Cost - Andrew Morgan
The Next…
Read more
Interesting reads
BOOKS
In Dutch:
Lynsey Dubbeld - Mode voor Morgen
Marieke Eyskoot - Talking Dress
In English:
Fashion:
…
Read more
Know your labels
Labelinfo.be offers a useful overview of sustainability labels. You can select ‘lifestyle and clothing’ to get a list of the labels that are relev…
Read more
Draw up an action plan with the Planner
Looking to take the green road, but having trouble planning your route or getting lost among the many options available? Rest assured: the Planner…
Read more
As paradoxical as it may sound: you don’t need a full-fledged CSR strategy to reap the benefits of it. So many companies wait until they’ve got it all figured out. They wait for the perfect approach. And they wait… and wait...
That’s such a shame! After all, the results of your first (perhaps less streamlined) initiatives often act as a catalyzer for the strategic integration of sustainability.
Make a habit of distinguishing between long-term and short-term goals. Transportation is a case in point:
1.3 Conduct the right analyses
In the past few years, the INFINITEX Living Lab has focused on the business side of circular fashion. The project was an initiative of Thomas More, in collaboration with partners such as HERW!N and Quifactum, and supported by VLAIO. The researchers defined three checks for those who want to work more sustainably by introducing resale, rental or repair services.
1.3.1 TARGET AUDIENCE RESEARCH
Knowing your target audience is the first step. Do you want to attract new customers or expand your offer for current customers? How old is your ideal customer? The Sustainable Fashion Monitor 2023 (Duurzame Modemonitor 2023) highlighted some key generational differences. Secondhand clothing is particularly popular among Gen Z and millennials, with the latter preferring digital platforms. Millennials are also more interested in clothing rental. They have a slightly bigger budget than Gen Z, but less time. Repair services appeal to slightly older shoppers, who use them to make their more expensive, high-quality items last longer.
The INFINITEX team recommends mapping your target audience’s behavior and communication preferences through broad surveys and/or in-depth interviews. Data from loyalty cards and website visits are also valuable. If you have multiple stores, it’s best to take regional differences into account. Some branches may have higher sales; others may collect more clothing, and so on.
1.3.2 BUSINESS CASE ANALYSIS
Finding a solid revenue model is crucial. You want to reach at least break-even with your sustainability initiatives, and ensure that extending product lifespan contributes positively to your results in the long term. The INFINITEX researchers discovered that companies that already have strong in-house logistics processes are more inclined to introduce a circular business model. They can save costs by relying on existing (transport) systems. Other companies choose to build their activities from the ground up, for example to stay close to their customers. The INFINITEX team gathered the following tips.
1.3.2.1 Optimize your process
You can reduce the startup costs of a circular model by leveraging existing processes (e.g. having shop assistants sort through collected clothing when the store is less busy) and by automating or digitizing operations. For example, a digital product database makes take-back significantly easier and more cost-effective, as it eliminates a very labor-intensive process.
1.3.2.3 Base your pricing on data
To determine the right price for your circular service or product, you can start by comparing prices. For secondhand items, for instance, the original price, prices for new collections and prices on platforms like Vinted all play a role. And market research is not the end point. Adjust your price to keep supply and demand in balance. Ideally, the number of items collected and the number of items sold should remain more or less the same.
We probably don’t need to tell you this, but pricing is really crucial. The Recare About Shoes researchers consider price, along with trust, to be the two main factors that convince customers to choose a sustainable product or service. Take secondhand, for instance. This gives younger consumers access to brands they otherwise couldn’t afford. And it offers older consumers a practical solution for their children’s clothes, which often have a relatively short use phase.
Unfortunately, but maybe unsurprisingly, the Recare About Shoes team noticed a low willingness to pay among most consumers. However, it does see opportunities in in-house or brand-specific services, such as repairs or resale through brand platforms. They allow you to stand out and create a unique value proposition. That’s how you increase convenience and build customer trust, which in turn boosts willingness to pay. And last but not least? You stay in control of quality and service, while also generating additional revenue.
1.3.2.4 Talk to your manufacturers
It’s important to collaborate closely with manufacturers and suppliers. For example, can they adapt to your business model (whether it involves repairs or rentals) by providing spare parts?
1.3.3 CUSTOMER JOURNEY
“It’s sustainable” isn’t a strong enough argument for every customer. So, identify the problem you’re solving, match your value proposition to it, and clearly communicate about it.
A take-back service caters to customers who don’t want to spend time or energy selling items on online platforms. With secondhand sales, you’re pleasing consumers who are looking for quality clothing but don’t want to pay too much for it. Thanks to rental services, customers don’t have to invest in a one-time special outfit, while a subscription allows them to switch things up all the time.
No matter which system you choose, don’t just highlight its benefits, but also explain the process. How are you cleaning and inspecting the items, for example? Explain on your website and in your store(s) what customers can expect in terms of product quality.
And finally: where will you offer your circular service? In physical store(s), you can get up and running quickly, but scaling up is more difficult and costs are higher because retail space is so expensive. With an online offering, you can reach a broader and younger audience and expand more quickly, but you’ll face higher variable logistics costs, and – in the case of secondhand clothing – you’ll need to convince customers to buy something that they can’t try on first.
1.5 Focus on transparency and communication
As we’ve already emphasized, the price of your products or services has a major impact on the success of your sustainable business model, and hence on the behavior of your customers. But the Recare About Shoes researchers discovered another key factor: trust. According to them, a sense of trust is primarily based on transparent communication, sufficient information and a strong brand identity. The latter matters because most consumers don’t (like to) actively look for sustainability information and quickly fall back on brands they already know and consider reliable.
That realization immediately leads to an overarching recommendation: your communication has to be clear and recognizable. After all, as the researchers discovered, consumers value transparency, but in reality they’re primarily after convenience and familiarity. Answers to questions like “What exactly do you offer?”, “How does it work?”, “Where can I find it?” and “How can I be sure of the quality of this product/service?” have to be easy to find.
The Recare About Shoes team also formulated some very specific recommendations:
Sustainable printing
There are a few no-effort options to reduce the environmental impact of your printing. Keep these quick wins in mind:
Print only when nece…
Read more
Sustainable marketing: from stuff to story
Sustainable marketing probably reminds you of environmentally friendly labels and packaging materials, or recycled paper leaflets. Such initiative…
Read more
Take the CSR-test
To get an idea of where your company stands in terms of respect to sustainability or corporate social responsibility (CSR) -- and to find out if t…
Read more
MVO Vlaanderen (CSR Flanders)
Go to the website of MVO Vlaanderen (CSR Flanders) to find out all there is to know about corporate social responsibility.
Read more
Don’t lose sight of your transportation costs and infrastructure
While it is crucial to think about the entire lifecycle of the products you make, there are a few additional things that you’ve got to keep in min…
Read more
Draw up an action plan with the Planner
Looking to take the green road, but having trouble planning your route or getting lost among the many options available? Rest assured: the Planner…
Read more
The yearly Green Week, the occasional Fair Trade breakfast, a day of volunteering at local nursing homes, … Though these initiatives deserve praise, you have to do more to really make CSR a part of the DNA of your organization.
It takes only five steps to evolve from individual, ad hoc initiatives to a fully developed sustainability policy.
Steps 1, 2, 4 and 5 are probably easy to grasp. Is step 3 less self-evident? Let us help you draw up an action plan in five steps.
The Planner results in an action plan that helps you answer these questions!
Draw up an action plan with the Planner
Looking to take the green road, but having trouble planning your route or getting lost among the many options available? Rest assured: the Planner…
Read more
You have no doubt thought long and hard about the sustainability issues that are crucial to your organization. Yet sustainability is not a one-man or one-woman show. The success of your project will depend on the support of your colleagues and the level of engagement of all the members of the organization. So don’t forget to ...
Get your employees and/or colleagues involved in your sustainability story. The sooner they are on board, the more ideas and actions they will support and come up with. Don’t neglect the management either, because the first steps towards a more sustainable organization often require some change management skills.
Both these teams are crucial to get your message across. Imagine a well thought-out CSR strategy that goes completely unnoticed because your employees fail to adequately answer your customers’ questions… Heartbreaking, right? Make sure your store staff and customer service team are able to provide customers with the right information or refer them to the right person.
Your store staff can also play a part at the end of the chain, when your item is already hanging in your customer’s closet. Giving advice on how to mend and maintain the clothes you sell, as well as on what to do with clothes that are no longer wanted, are part and parcel of a circular approach.
Terminology
Bio-eco-vegan-fairtrade … What’s in a name? When you’re lost in semantics, make sure to check the website of Eco Fashion World or the glossary of …
Read more
Sustainable marketing: from stuff to story
Sustainable marketing probably reminds you of environmentally friendly labels and packaging materials, or recycled paper leaflets. Such initiative…
Read more
Fashion Revolution - a global movement striving for transparency in fashion
Fashion Revolution is a global movement that strives for more transparency and honest working conditions in the clothing business. They believe in…
Read more
How transparant are the labels you wear?
Fashion Transparancy Index
A review of 100 of the biggest global fashion brands and retailers ranked according to how much they disclose about…
Read more
Know your product inside out - be critical
Make sure you know exactly how your product is made, from beginning to end. Go through all the steps, which are also listed on the homepage of thi…
Read more
Draw up an action plan with the Planner
Looking to take the green road, but having trouble planning your route or getting lost among the many options available? Rest assured: the Planner…
Read more
CSR is all about transparency. The importance of keeping your employees informed should be clear by now, but your stakeholders and customers should be kept up to speed on your approach, your plans and your results as well.
It goes without saying that your information should be 100% correct at all times. Greenwashing, or misleading customers about your sustainability efforts or the environmental benefits of your product, is deadly for your business in these times of quick tweets and snappy posts.
Don’t wait for perfection, but communicate about the bumps in the road as well. Sustainability is never ‘done’: there are always things you can improve on.
How you communicate your sustainability efforts is completely up to you. Here are a few beautiful stories to inspire you:
Want to do everything by the CSR book? Then a sustainability report is a good idea. You can create one using the Global Reporting Initiative standard (and a little outside assistance if it’s your first time). This allows you to turn your communication strategy into a measurement and management tool. A few examples to get you going:
Thinking of working with sustainability labels, but no idea where to start? Have a look at the Labelinfo website (in Dutch) or use the Clean Clothes Campaign to learn the ins and outs of labels, trademarks and management systems. Which certification system you ultimately use depends on what exactly you want prove. This guide on apparel and textile verification systems give you an overview and can help you decide (in Dutch).
Sustainable marketing: from stuff to story
Sustainable marketing probably reminds you of environmentally friendly labels and packaging materials, or recycled paper leaflets. Such initiative…
Read more
Fashion Revolution - a global movement striving for transparency in fashion
Fashion Revolution is a global movement that strives for more transparency and honest working conditions in the clothing business. They believe in…
Read more
How transparant are the labels you wear?
Fashion Transparancy Index
A review of 100 of the biggest global fashion brands and retailers ranked according to how much they disclose about…
Read more
Project Provenance - Knowledge center for transparency
The London-based Project Provenance Ltd is a platform that gathers knowledge about transparent production chains, sustainability and ethical guide…
Read more
Draw up an action plan with the Planner
Looking to take the green road, but having trouble planning your route or getting lost among the many options available? Rest assured: the Planner…
Read more