Sustainable Products, 2nd Edition

Chapter 2 Economic concepts in the context of sustainability

2.1 Value creation and supply chains

A company exists to create value – and to find new ways to create even more value to its stakeholders. Since a company always exists in the context of supplying companies (which also create value) and supplied customers, one speaks of value chains in this context. Basically, a value chain consists of a series of activities that are carried out to create value – be it in one or more companies. The elements in value chains are interconnected – hence the term “chain” – and often entire chains are interlinked, which in practice makes them difficult to delineate. According to Michael Porter, a value chain focuses on systems and the primary and supporting ...