planned obsolescence - corporate social responsibility
TRANSCRIPT
CORPORATESOCIALRESPONSIBILITY
DAVOISEFlorianETOURNEAUClementFLACHERMatthiasGAUTHIERMarieGONGLuyaoHOURYWalidJOLYAugustinKADDOURIMarouaneLEGARFFFrédéric
PLANNED OBSOLESCENCE
1
1. What is planned obsolescence?2. Different typesofobsolescence3. Origins ofthis mechanism4. Impactonsociety5. Legislation6. Solutions
Sum up
2
https://www.youtube.com/watch?v=lW17rr20tGY
Introduction
3
What is planned obsolescence ?
It’s aBusinessstrategy inwhich theobsolescence(theprocess ofbecoming obsolete—that is,unfashionableornolongerusable)ofaproduct is planned andbuilt into it from its conception.“TheEconomist”
Mightbeprofitableforthecompany Harmreputationandimage Customersmaydecidetopurchaseforcompetitors
Pushcustomers topurchase newproducts ofacompany toreplacetheold ones !(Thatadded valueforthecompany is tocommercialize its newproducts even ifthere is nodifferences orfewdifferences
compared totheold products)
4
BrooksStevensintroduced theconceptoffashionforeveryday items
What is planned obsolescence ?
While models ofphonesandTVs succeed,wasteaccumulates andnatural resources aredwindling
Context
1950BernardLondonsaid legally binding obsolescenceaway toresolve theeconomic crisis atthetime
1932
NOW5
What is planned obsolescence ?
Themechanisms involved :• Technical• Psychological
Planned obsolescencealso weighs on thepurchasing powerandcontributes totheimpoverishment ofhouseholds
Environmental organizations challengethecompanies tofind newissues
Observation
INNOVATION
Makesproductsstronger
Moreefficientbutlessresistent
Morerapidlyrenewed
6
6Types of obsolescence
Obsolescenceoffunction Obsolescenceofquality Obsolescenceofdesirability
Ecological obsolescence Economic obsolescence Obsolescencebyexpiration
Thenewproduct makes theoldoneinferior (newcharacteristics
forexample).Defects,incompatibility
It’s when theproduct is nolongerworking.Mostupsetting typefor
consumers
Productbecomes old-fashionedduetothelaunch ofanother one,more“in”.Also called “Esthetic”
obsolescence
Norms andlaws areforcingobsolescence
Reduction invalueduetoexternalfactors
Eat-by-date,Sell-by-date. Usuallyforpublichealth
7
Origins of this mechanism
1924
Americannationalautomobilemarket is reaching saturationAlfredSloan jr,head ofGM,suggested a« Annualmodelyeardesign »changes« Dynamic obsolescence ».Smallplayers could notmaintain thepaceandexpense ofyearly re-styling.HenryFord’s strategy :based onsimplicity,economies ofscale anddesignintegrity.
GMsurpassesFord’s salesin1931.Ending theDepression Through PlannedObsolescence,BernardLondon,1932.
London’s planwould havethegovernmentimposealegal obsolescenceonconsumerarticles,tostimulate andperpetuateconsumption.19
318
Brooksstevens (anamerican industrial designer)used theterm « planned obsolescence »asatitle forhis talkatanadvertising conference inMinneapolis.
« Instilling inthebuyer thedesire toown something alittle newer,alittle better,alittlesooner than is necessary ».
Inlate 1950s,commonly used term forproducts designed tobreakeasily ortoquickly gooutofstyle.
VancePackard,TheWasteMakers,1960.Defined 2sub-categories ofplanned obsolescence(durability&function)
Origins of this mechanism
1950
-19
60
9
Impact on society
Primary resources Production Distribution Consumption Recycling
Load, cadnium, mercury,water, cooper, plastics,
silicon, glass, …
Foxcom Apple,Sony, Nokia Consumers China,Nigeria,India,Ghana
10
Impact on society
PrimaryRessources
• Theuseofraw materials hasincreased almost by50%inthepast 30years
• Richestcountriesconsumeuntil10timesmoreresourcesthandevelopingcountries
• Resourceextractiontakesitstollontheenvironment
• Electronicscontainalotofrareandpreciousmetalsthataremoreeconomictorecapturethantoextractfromtheirextremelylimitedvirgin sources
11
Impact on society
PrimaryRessources
• Cell Phonescontain lead,cadmium,andmercury whichareterriblefortheenvironment
• Theflame retardantprocess through which that plasticinthephones is putthrough can causecancerwhich notonly affectstheenvironment butthose inhabiting it
• Highconsumption ofwatertoproduce Copper, theprocess oftransformation results intoxic components
• Depletion ofNaturalResources
12
Impact on society
Production
• 56H/Week
• Low Income
• 11Executive days
• Children aredroppingofffrom schools inorder towork
• 14suicidesin2010
1.2MillionemployeesHeadquarters :TaiwanSlogan:TheArtofMore
2010/2011:FoxconnGate
13
Impact on society
WorldConsumption
Reasons ofworldconsumption’s growth :
Productlessexpensive HouseholdincreaseofequipmentrateShorterlifetimeMiddleclassincreasing
Between 2007and2020,domestic television e-wastewill double,computere-wastewill increase fivetimes,andcell phoneseighteentimes
Theuseofraw materials hasincreased almost by50%inthepast 30years (50BTRM)
Increases theshare ofelectricity consumption attributable toelectronics andhousehold appliances continues torise
Shorter lifetime andless expensive products 14
Impact on society
Electronic&E-waste
• Guiyu, is known asthebiggest e-waste recycling siteintheworld
• 80%ofGuiyu's children exhibit respiratory ailments,andareparticularly atrisk ofleadpoisoning (many heavy metals andtoxic plastics)
• 70%ofour e-waste is senttoChinaandIndia
• Newcountriesaffected :GhanaandNigeria
Consequences :- Lack ofKnowledge- Dismantling- Diseases- Pollution
15
Impact on society
ENVIRONMENTAL ISSUES SOCIAL ISSUES
ResourcesDiminution Waste
Pollution
ChildLabour
Social&politicalConflicts
Legallabour
16
Legislation
→March2015:adecree cameinto forceonly inFrance,which aims tofight this practice.
Only applicableinFrance:manufacturers havetoinform their consumershowlong their productsareintended tolast.Then,vendors arerequired totellthefinalbuyers.Failure todoso results ina15.000eurosfine.
Other aspect:manufacturers arerequired torepair,replaceany defective productwithin thetwoyears from thepurchase date,freeofcharge.Thisleadstothecreation ofamandatory two-yearwarranty.
17
Legislation
• European Economic andSocialCommittee (EESC)renewed its callforactiononPlanned ObsolescencefortheEuropean roadmapfor2016.
• Belgium, theNetherlands,SpainandFinland allhavedrafted laws inthefighttoeliminate Planned Obsolescence.
• TheConsumerProductSafety CommissionofUnitedStatesdoes havethepowertoissuedurability standardsifit chooses toexercise it.
• TheItalian government guarantees two years ofserviceforany newcomputer.
• TheSwedish government is introducing tax breaksonrepairs toeverythingfrom bicyclestowashing machines.
Alternativelaws
18
Solutions GOVERNMENTS
TAKE A LEADERSHIP ROLE
Ensure product repairs areaffordable
Provide education toconsumers
Establish laws againstplanned obsolescence
Create andmonitorstandardsforproductdurability andlongevity
Increase product waranty Governmental TVandradiospots
SocialMedia
School prevention
Ensure transparency
Better access toproductinformations
ImproveEco-participationtax 19
Solutions CONSUMERS
Thinkcriticallyaboutpurchase
Consumeless
Recyclemore
Notparticipateinfashioncycle
Re-use
Buyandusesecond-hand
BuyRepaireditems
CHANGE YOUR CONSUMER HABITS
1. Here,whoisstillusingthefirstcellphoneheeverhadinhislife?
20
Solutions
UsedProducts
Adviceson/off-line
tofix
Re-use product
Recyclingproduct
Donationsaresales
CONSUMERS
UseCollaborativeEconomyFindinformationChoosewhenpurchasing
WHAT YOU CAN DO NOW!
Follow onlinecomunities aboutreusingandrepairing products
Useonlineandphysicalstructurestofixandpurchase
Beaware aboutenvironmentals labelsandlifetime certifications
21
Solutions INDUSTRIES
ConsiderEnvironment Recognizeproductlifetimeamong
businesspractices
1 2
Hireengineersanddesignerswhowillcreateproductswithanenvironmentalstateofmind
3
Practiceandpromotesustainability
4
“Papercanusuallyberecycled6timesbeforeexhaustingitsfibrousquality”
COMPANIES WILL NEED TO ADAPT
1. Asanengineer,howwouldyoureactifyouweretoldtolowerthequalityoftheproductyouwereworkingon?
22
Solutions
CircularEconomy
Sincetheindustrial revolution, theeconomicmodel isbasedonplentifulnaturalresources
andalinearmodel :
Extractedrawmaterials
Production
Consumption
Wastes
TIMETOCHANGE! REPAIRFIRST,THENRE-USEANDFINALLYRECYCLE!
INDUSTRIES
23
Case Study
Investinconfectiononfixablesproducts
20engineers :conceptionofnewproducts lines
Stockof6millions sparepartsinlocalarea(Franche-Compté)
Fairpricetobeaccessibleforconsumers
Investinfive3Dprinters
8% Purchasingintentions
STRATEGY OBJECTIVES RESULTS
300newfixables productseachyears
Fix97%ofproductsforthe10nextyears
Plantofix500000productsin2016
6500repaircenters
GROUPESEB
24
DON’t FORGET, You’RE THE MOST IMPORTANT !
Thanks for watching, Any questions ? Don’t hesitate !
25