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    Case Study

    Darwinians at the gate: Sustainability, innovation and growth at DSM

    By Benoit F. Leleux and Jan Van der Kaaij
    22 pages
    November 2013
    Order this case study
    Reference: IMD-3-2355

    For Feike Sijbesma, CEO of Royal DSM since 2007, rapid changes were normal as major trends were playing out. Global population swelled, the balance of wealth shifted, often increasing disparities and inequalities, while human beings remained hooked on using more resources than the planet could handle or replace. As early as 2010, DSM formulated a strategy to build on its strength in Life and Materials Sciences, capitalizing on what it saw as the most promising global megatrends, notably health & wellness, global shifts and energy & climate change. At DSM, sustainability went way beyond complying with laws and regulations: It was a key driver for innovation and a core value for the firm. In the aftermath of the financial crisis of 2007 and the ensuing recession, cost concerns came back to the forefront, pushing the sustainability agenda to the back. The sense of urgency on environmental and social issues was gone, so how could you convince people a totally different approach to doing business was needed? Could sustainability really be turned into an effective driver for innovation and ultimately improve a company’s profitability? Were the three bottom lines – financial, social and environmental – really mutually self-reinforcing, instead of mutually exclusive? Proving the case to some still-reluctant financial investors could prove difficult. For DSM, the ultimate challenge to its broad-based sustainability agenda was quite clear: Could a case be made for sustainability as a key driver of value creation over the long term?

    Learning Objective

    Sustainability as driver of innovation and growth, CSR in action, corporate venturing, sustainability strategies, growth management, portfolio management.

    Keywords
    Sustainability, Innovation, Technology Management, Growth Management, Business Venture, Venture Capital Company, Growth Strategy, Strategy, General Management, Specialty Chemical, Life Science
    Settings
    World/global, Netherlands
    Dutch State Mines, Manufacturing, Chemicals
    2010-2013
    Type
    Field Research
    Copyright
    © 2013
    Available Languages
    English
    Related material
    Teaching note
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    Copyright owner IMD Copyright
    Organization Daikin Industries
    Industry Consumer Goods, Home Appliances
    Available Languages English
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    Reference IMD-7-2620
    Copyright ©2024
    Copyright owner IMD Copyright
    Organization Daikin Industries
    Industry Consumer Goods, Home Appliances
    Available Languages English
    Contact

    Research Information & Knowledge Hub for additional information on IMD publications

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    This case study examines the remarkable evolution of Daikin Industries, a company that demonstrated resilience and innovation over nearly a century. Founded in 1924 by Akira Yamada in Osaka, Japan, Daikin originally focused on manufacturing aircra...

    Global Business Strategy
    By Kazuo Ichijo and Yunfei Feng
    Case reference: IMD-7-2618, © 2024
    Read more
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    By Joep de Caluwé
    in I by IMD
    Summary
    Learn why flashy innovation often fails and how a strategic, fact-based approach can drive real innovation success in corporate environments. Insights from industry experts.
    Read more
    Contact

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