There is a fine line between a company’s responsibility in being environmentally sustainable and the company’s agenda to be as financially successful as possible. Through reading this article, I was faced with the question as to whether environmental stewardship and financial progress can coexist in a large company. It seems that Southwest airlines, America’s largest budget airline has found a creative solution to a temperamental dilemma.
Southwest Airlines has redirected the 80,000 leather seats- which would otherwise meet their end at disposal facilities- to manufacturing facilities which utilize them in making luxury products. I found this operations management decision to be very impressive as the company is able to create a new revenue stream out of material which was once of no value to the company. Through the method of differentiation, the company is able to appeal to the consumers that are willing to pay more for a luxury good. Moreover, an effective selling point of their luxury goods is that the materials are recycled which appeal to the customers such that they may also be environmental stewards.
In addition, I would like to offer a contrast to my peer Sam Wong’s blog post which may be found here. I would rather comment that the company’s upcycling of the leather seats begins with the intention of being environmentally sustainable and that the increase revenue comes rather as an added benefit rather than an ulterior motive.
Sources referenced:
Article:Braw, Elisabeth. “Southwest Airlines Upcycles 80,000 Leather Seats into Bags, Shoes and Balls.” Circular Economy Hub. The Guardian, 15 July 2014. Web. 15 Sept. 2014.
Image found here