Emergence and Implication of "Sustainability Industry": the Impacts on Business and Non-Profit Organisations (NPOs)

This paper seeks to explore the emergence and growth of the “Sustainability Industry”. The sustainability industry is defined as a bundle of organisations that strategically aim to achieve the sustainable developments in... [ view full abstract ]

This paper seeks to explore the emergence and growth of the “Sustainability Industry”. The sustainability industry is defined as a bundle of organisations that strategically aim to achieve the sustainable developments in a society.  The industry, initiated and driven by various types of organisations, is emerging and becomes more and more important in every aspects of people’s life.  The paper tries to focus on different types of actors of the industry, particularly, the Non-Profit Organizations.  The sustainability industry is organised with very different types of actors, typically represented by Non-Profit Organizations (NPOs), For-Profit Organizations (FPOs) usually offering sustainability solutions, Government Organizations (GOs), and Intergovernmental Organizations (IGOs). Each of them has its specific approaches to influence unsustainable businesses to align with sustainability.  The paper provides the different approaches and strategies, based on each organization’s business model, utilized by each in creating influence within the business landscape.

The paper studies the mechanisms by which the Non-Profit Organizations (NPOs) utilize to impact directly the Supply Chain of unsustainable business and these mechanisms are named as:

·         Domino Supply Chain Effect: supply chain network as a tool

·         Roots Supply Chain Effect: Influencing Companies’ upstream processes

·         Linkers Disruptive Supply Chain Effect: Connecting supply chains

·         Education & Research Effect on supply chain: innovation is key of the sustainability revolution

It is determined that Non-Profit Organizations are the spearhead of influence for sustainability. However, their structure is fragmented and lacking capacity. This paper develops a framework representing the needed evolution of these organizations through establishing the 7 success factors for strong influence: Finance, Engagement, Innovation, Initiation, Research & Education, Company Relations, & Politics. The 7 factors are difficult to attain by one organization, therefore, non-profit organizations need to “borrow” resources and capabilities from other non-profit organizations through collaboration. The framework provides a structure of collaboration between these organizations based on the 7 success factors. 

The paper contributes to knowledge by firstly establishing a foundation for the understanding of the sustainability industry. Secondly, analysing and determining strategies utilized by sustainability industry players to influence businesses. Thirdly, developing an understanding of non-profit organizations mechanisms of influence companies’ supply chains. And finally, by developing a futuristic framework for the evolution of Non-profit Organization and its graduation from fragmented units to a strong network.