By Amrita Haldipur, Anchal Jain and Amit Karna
Ease of Doing Business for MSMEs: Mahatma Gandhi often encouraged fellow citizens to look within for the change they wanted to see in the world. His timeless advice that ignited the minds of millions and shaped the freedom struggle continues to resonate even today. Indian consumers, especially the world’s largest millennial population, are embracing mindfulness and seeking conscious consumption in the post-pandemic world. This consumer behaviour presents a unique opportunity that creative and cultural brands cannot afford to lose. Responsible brands encourage consumers to take ethical consumption decisions with an internal moral compass and accountability and lift all stakeholders in the value chain – from the grassroots to the consumer. This has led to creative and cultural entrepreneurship embracing a simple rule: Consciousness is who we are, not what we want to be.
Ethical consciousness can be a powerful way to define the core purpose of a brand’s existence. Being conscious is no longer just a good brand campaign to lure the fast-evolving consumers of today. Every brand must actively participate in a journey that encourages all stakeholders to take responsible actions and make inclusive decisions. In a consumption-oriented society such as ours, being ethically conscious demanded acting morally, as meeting social and environmental responsibilities had economic tradeoffs. But we are fast moving towards a world where integrity, honesty and accountability to doing the right thing create added value for customers. Brands and their network of stakeholders can capture considerable value when they imbibe this guiding principle.
The real challenge is creating an autopoietic ecosystem where all stakeholders can coexist harmoniously. This approach becomes a catalyst to:
- Create environmental, social and economic value
- Ensure individual accountability
- Lead change in the collective consciousness of the world
The role of ecosystems is immense in the long-term impact of ethical brands as it fosters everyone in the ecosystem to reach their full potential. In India, we have several examples of ecosystem-driven brands that exemplify how focusing on inclusive growth redefines business success. One of them is Jaipur Rugs. By empowering marginalised communities, nurturing a new ‘creative caste’ and connecting them with global markets, over the years, it has transformed the lives of thousands in rural India whilst building a flourishing ethically conscious brand. The ecosystem of Jaipur Rugs has allowed rural artisans to discover their best selves. It is a solid example of an autopoietic system where the stakeholders are treated with fairness and dignity and given a chance to earn a sustainable livelihood with the work of their hands. As a result, it gave rise to one of India’s largest and most admired artisan networks producing incredible quality rugs for the global market.
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Thriving ecosystems empower local communities and MSMEs through nurturing community leadership, supporting skill-building among the producers at the last mile to boost employability, and equipping members to be financially independent and digitally literate besides educating them about social security, health and land rights. Other noteworthy brands with robust ecosystems include Dastkar, Phool and Lal10. They have been working on building a transparent value chain and finding much relevance among consumers because of their holistic design thinking. We need more ecosystem-led brands that celebrate interdependence and enhance the value proposition of all participants involved – from the weakest link at the grassroots to the final creation and delivery of the products to the consumers.
This raises an essential consideration in building ecosystems – who are your participants?
We must carefully think about handpicking every member of this supply chain – why will they join the ecosystem; how will they contribute; what will be their rewards; where you as a business custodian will find them; and when should they join. Coherently answering these questions helps establish a self-sustaining ecosystem creating meaningful products.
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Businesses especially MSMEs in the creative and cultural industry thrive when they understand their niche, where they can offer their exceptionalness and authenticity by creating a business model around it. The value of creative and cultural businesses is often proportional to their ability to stimulate cultural and social development on the supplier side and provide an economic tool for growth and development in the form of meaningful employment that helps the artisans use their skills. Building an ethically conscious brand in each of their businesses is a necessity, not an option. Every entrepreneur in this domain will benefit if s/he were to focus on building an ethically sound business by enhancing the value proposition of all individuals part of the ecosystem and transforming the collective exceptionalness and authenticity of the brand offering. Such products are likely to have a big pull from conscious consumers globally.
Anchal Jain and Amit Karna are the faculty co-chairs of the Creative and Cultural Businesses Programme at IIM Ahmedabad. Amrita Haldipur is a Research Associate with IIM Ahmedabad.