An Initiative Led by EDHEC
This guide is the result of collaborative efforts with the support of several partners, initiated by EDHEC Entrepreneurs, the network of the three incubators of EDHEC Business School.
The development of this unique reference guide for startups aligns with the school's commitment to redefine entrepreneurship teaching practices and methods, aiming to nurture companies that fully integrate global performance challenges at the core of their models.
This commitment is embodied in the Responsible Entrepreneurship by Design (RED) model, led by the Centre for Responsible Entrepreneurship at EDHEC (CRE), a center dedicated to coordinating research, program structuring, and EDHEC's incubators around key entrepreneurship, innovation, and responsibility challenges.
EDHEC Entrepreneurs' Ambition: Nurturing the Next Generation of Committed Entrepreneurs
At EDHEC Entrepreneurs, our aim is to assist every startup in integrating responsibility as early as possible into its internal operations and at the heart of its business model.
That's why, last year, we conducted the first study in France on responsible practices in startups in partnership with STATION F.
This groundbreaking study, involving over 200 French startups, enabled us to accurately assess ESG practices in startups. In particular, it revealed a strong desire among startups to engage in more responsible practices and a growing interest in these issues due to the benefits they can derive in terms of talent acquisition, reputation, or market credibility.
However, this desire faces challenges in implementation due to the lack of guidance, reference frameworks for these practices, and even a consensus on what responsibility in startups entails.
Our ambition, embodied in this Guide and the EDHEC Center for Responsible Entrepreneurship, is to equip entrepreneurs and foster the emergence of a new form of entrepreneurship that considers these responsibility issues from the outset and at the heart of the business model.
EDHEC's Commitment to Foster the Emergence of Responsible by Design Entrepreneurship
A startup responsible by design is a startup that intentionally integrates global performance challenges (economic, environmental, and social) from the outset and at the core of its business and operational model, aiming to build the company on the most solid foundations possible.
A startup responsible by design is based on 2 pillars:
1. The Power of Beginnings
Responsibility is often integrated relatively late, by mature startups. Integrating responsibility from the outset of the project helps avoid significant corrective efforts later on, preventing the accumulation of "ESG debt."
With substantial resource constraints at the start of an entrepreneurial venture, it might seem reasonable to postpone ESG work.
However, through our research, we found that the amount of work required to integrate responsibility also increases significantly as the startup grows (increase in customers, users, employees, suppliers, etc.). The startup then accumulates "ESG debt."
Indeed, we can draw a parallel with technical debt, which refers to the accumulation of issues and gaps in software that will require additional efforts to rectify in the future.
This is why it's crucial to integrate responsibility from the outset, building the startup on sound and robust foundations while respecting the extremely limited resources available in the early days.
2. The Power of Coherence
Placing responsibility at the core of the startup prevents it from being treated as an additional component, thereby increasing coherence. This fosters alignment within the company and enhances stakeholder trust.
Founding Principles
This model is designed as a:
- Universal: It isn't limited to impact-driven startups but applies to 100% of startups, across all sectors and business models, to drive change.
- Global: It's built upon a comprehensive view of performance (economic, social, environmental) and a holistic perspective of the company (purpose, operations, business model).
- Pragmatic: The RED methodology provides both practical tools tailored to startups and enlightening concepts for building a responsible enterprise.
Interested in the initiative? Want to join a community of committed entrepreneurs and experts on this journey? Join us!
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