Unlocking sustainable social innovation in operations: Embracing collaborative consumption through an Environmental, Social and Governance (ESG) lens

Abstract

This chapter explores the dynamic relationships among social innovation, collaborative consumption, and Environmental, Social, and Governance (ESG). It begins by defining these concepts, elucidating their driving forces and significant outcomes, and then delves into the primary challenges associated with each. The chapter highlights specific challenges at the intersection of these three research domains. Social innovation has gained prominence in recent years due to rising concerns about societal issues affecting public management, business operations, and entrepreneurship. While innovation is widely recognized as a key driver of economic growth, with economists estimating that 50–80% of growth stems from innovation and new knowledge, social innovation remains less understood compared to business and scientific innovation. Nevertheless, social innovation is crucial for economic growth, particularly in addressing barriers like climate change and aging populations. Sectors such as health, education, and care are expected to drive significant growth, necessitating innovative public policy models. Civil society is increasingly viewed as a fertile ground for social innovations that contribute to sustainable production and consumption systems. Despite the provision of sustainability performance data through ESG metrics, these often fail to capture customers’ perceptions of social innovation. However, the growing investment in sustainable initiatives underscores the significance of ESG considerations. Collaborative consumption, a notable social innovation, challenges traditional business models and enhances societal quality of life. The chapter concludes by outlining potential avenues for future research, emphasizing the need to explore the impact of social innovation on economic value creation and the role of political dynamics in driving systemic change.