2SOCIAL AND ENVIRONMENTAL SUSTAINABILITY. RESPONSIBLE CONSUMPTION AND CORPORATE RESPONSIBILITY (CSR) Flashcards
Is value the tangible difference between costs of inputs and products?
No, value includes aspirational and sentimental aspects, not just economic factors.
Is value an objective parameter?
No, value is subjective and varies among different customers.
Can value always be monetized as an economic parameter?
No, value can include sentimental aspects that are not easily monetized.
Do producers receive a price equivalent to the value they create?
No, producers often do not get a price that fully reflects the value created.
Are fashion customers willing to pay a price equivalent to the value they receive?
No, customers often pay less than the perceived value of the product.
What is the difference between value and price?
Value is the perceived benefit to the customer, while price is the monetary amount charged for the product.
What is the value chain?
A tool for disaggregating a company into its strategically relevant activities to focus on competitive advantage sources.
What does each step in the value chain need to do?
Add some increment of value to the finished product or service.
What is the goal of analyzing a value chain?
To identify activities that result in higher prices or lower costs.
What is a value system?
It includes companies upstream (suppliers of raw materials) and downstream (distribution channels to customers).
What is the margin formula in the value chain context?
Margin = Price - Cost
What constitutes value to end customers?
The perceived benefits of a product divided by the perceived sacrifices of buying it.
What factors contribute to the results aspect of value?
Overall quality, ease of use, warranty, purchasing experience, etc.
What factors contribute to process quality?
Convenience, fun experience, short waiting times, ease of finding products, etc.
What are customer access costs?
Costs associated with club membership fees, inconvenient locations, poor store hours, inadequate parking, etc.
What is Tobin’s Q ratio?
A measure comparing a company’s market value to the value of its tangible assets.
What does a Q ratio greater than 1 indicate?
Financial markets believe part of the company’s value comes from its non-tangible assets.
What are public goods?
Goods that cannot exclude anyone from using them and are not reduced by individual consumption.
What are externalities?
Side effects of actions by individuals or organizations that affect others.
What are examples of negative externalities in the fashion industry?
Factory pollution, environmental degradation.
What are examples of positive externalities in the fashion industry?
Job creation, income tax revenues.
What is sustainable development?
Development that meets present needs without compromising future generations’ ability to meet their needs.
What is CSR?
Corporate Social Responsibility; the responsibility of enterprises for their impacts on society.
What is the stakeholder theory?
The idea that companies have relevant stakeholders beyond just owners and shareholders, including government, NGOs, and local communities.
What is ESG?
Environmental, Social, and Corporate Governance; a framework for measuring a company’s impacts in these three fields.
What is shared value according to Michael Porter?
A management strategy that enhances company competitiveness while advancing social, environmental, and economic conditions.
What is circular fashion?
Fashion that focuses on reducing waste by reusing, repairing, and recycling garments.
What is upcycling?
Using waste materials to create new products of equal or better value than the original.
What is downcycling?
Using waste materials to produce less valuable products.
What is cradle-to-cradle design?
Designing products so that all materials can be safely returned to the environment or reused.
What is the triple bottom line (TBL)?
Simultaneous performance in economic, social, and environmental dimensions of sustainability.
What are SCRAPs?
Sistemas Colectivos de Responsabilidad Ampliada del Productor; systems for collective producer responsibility.
