Why Not Use the Sea? A Shared Value Approach to Sustainable Value Creation When Using Carbon Dioxide as a Valuable Resource in Manufacturing

Abstract

Interest on the creation of sustainable value has recently increased as a response to global issues caused by traditional business-as-usual logic. Indeed, corporations pursuing profits and competitive advantage at the expense of social and environmental resources has become a source of pressing concern and institutionalized unsustainability needs to be reversed. To create sustainable value, a paradigm shift is required in who benefits from value creation: beyond customers, suppliers, and business partners, value should be created for an expanded range of stakeholders including governmental and non-governmental entities, local communities, and future generations. This study refers to unique value creation derived from business modeling for sustainability and the stakeholder theory perspective as a theoretical lens for understanding how sustainable shared value is created in the context of carbon capture and utilization. Using an exploratory, in-depth single case study of a microalgae cultivation project, the study gathers empirical evidence to show how engaging stakeholders around a common purpose can serve as a path to open new business opportunities for sustainable shared value. This study challenges the Friedman's assertion of shareholder profits and shows evidence of the power of creating shared value if a company adopts a purpose beyond profits. Through empirical findings on how embedding a sustainable purpose at the core can lead to business opportunities that provide shared value for multiple stakeholders, it outlines how a company can obtain value propositions that cater to economic, environmental, and societal balance in the drive to move toward a more sustainable society. This study thus contributes to the growing body of empirical literature on creating shared value and business models for sustainability. The findings are also relevant for various industry practitioners, presenting insights on sustainable value creation and business modeling for an industry plagued by high emissions and stakeholder pressure to do good.

Implementing the water-energy-food nexus approach to create synergies and reduce tradeoffs between the Sustainable Development Goals

“…The system outputs of algae cultivation can be "optimized" toward different "primary products:" "food output," "carbon sequestration," and "waste treatment" (Bazilian et al 2013, p. 161). Agwu et al (2022) explore a stakeholder theory perspective and apply it to the algae cultivation project discussed in this article. Agwu et al (2022) discuss how to engage stakeholders around a common purpose by creating a shared value framework.…”

“…Agwu et al (2022) explore a stakeholder theory perspective and apply it to the algae cultivation project discussed in this article. Agwu et al (2022) discuss how to engage stakeholders around a common purpose by creating a shared value framework. Agwu et al (2022) note that "little is known about stakeholders' motivations to participate in creating shared value and how sustainable value is created" (Agwu et al 2022, p. 3).…”

“…Agwu et al (2022) discuss how to engage stakeholders around a common purpose by creating a shared value framework. Agwu et al (2022) note that "little is known about stakeholders' motivations to participate in creating shared value and how sustainable value is created" (Agwu et al 2022, p. 3). Optimizing fertile functionings and reducing corrosive disadvantage could be principles that could guide such a definition of "shared value.…”

Mass Cultivation of Microalgae III: A Philosophical and Economic Exploration of Carbon Capture and Utilization

“…The project has, since it started in 2015, included multiple stakeholders, this in a context that enables cooperation of different institutional and individual entities to achieve a shared vision. As outlined in [66], adopting a sustainable purpose that transcends beyond profits enabled the company to create a shared value and thus begin the sustainability journey.…”

Invisible shareholder: a theoretical perspective on the relationship among natural capital, business, and society

“…While research on natural capital and its interaction with society is on the rise, there remains a gap in the literature regarding its full integration into the economy (Fisher, Wit, & Ricketts, 2021). Motivations driving stakeholders to create shared value and the process of sustainable value creation are poorly understood (Agwu, Oftedal, & Bertella, 2022). Additionally, financial reports often fail to adequately capture the relationship between business and the environment (Houdet, Ding, Quétier, Addison, & Deshmukh, 2020;Unerman, Bebbington, & O'dwyer, 2018).…”