Reputation and the Relationship with Stakeholders/ESG in a Practical Way to Enhance Corporate Reputation Among Various Stakeholders

I was recently reading an article about Ziel Cosmetics that discussed the technique of Upcycling– a process to transform waste or discarded products into new materials or products of higher value, which reduces waste and promotes the circular economy.

The term upcycling, according to Ecycle, was coined by German environmentalist Reine Pilz in 1994. In 2002, it gained popularity with the publication of the book Cradle to cradle: rethinking the way we make things (in Brazil, Cradle to cradle: criar e reciclar ilimitadamente), written by American architect William McDonough in partnership with chemist Michael Braungart.

The Brazilian company Ziel Cosmetics is a pioneer in the concept of upcycling beauty, repurposing byproducts of winemaking (such as grape seeds) to create cosmetics, which minimizes waste and reduces the carbon footprint. Additionally, the company collaborates with local communities, does not conduct animal testing, and adopts sustainable packaging, reinforcing its commitment to ethical and environmentally responsible practices (Ziel Natural Cosmetics).

Upcycling and corporate reputation

We notice that the relationship between upcycling and corporate reputation is increasingly relevant, especially in a context where sustainability is one of the key factors in the relationship between consumers, investors, and business partners with companies or their brands.

The mere presence of this concept expressed in the brand strengthens its manifesto by associating values related to social responsibility and engagement with environmental causes, which are so necessary today. On the other hand, this helps expand its relationship with stakeholders in a way that brings more attractive results for the company.

1. Employees – A great place to work: Practices of upcycling can positively impact employees, especially younger generations, who value companies that demonstrate concern for environmental impact;
   
2. Government and Regulatory Bodies – Compliance and public recognition: Companies can align their operations with environmental laws and regulations, gaining positive recognition from governments and regulatory bodies. Some regions offer tax incentives or green certifications for companies that demonstrate sustainable practices, which helps strengthen their reputation;
   
3. Suppliers and Partners –sustainable supply chain: By choosing suppliers that use upcycling in their processes, a company can strengthen its business partnerships and create a sustainable value chain, which can lead to a ripple effect, encouraging other suppliers to adopt similar practices. Additionally, there is the possibility of joint product development. An example is the partnership between Adidas and Parley for the Oceans, which transforms plastic retrieved from the oceans into sports products. This strengthens both the brand’s reputation and that of the involved partners. Another example we can mention is the Brazilian company Mush – which uses organic byproducts from the agroindustry and transforms them into a new moldable raw material that can be discarded directly into nature. With this new raw material, it is possible to develop decorative items, construction materials, and even furniture;
   
4. Investors – increase in market value – These environmental and circular economy practices tend to be more valued in the financial market and increase attractiveness when adopted and communicated in ESG reports;
   
5. NGOs and Sustainability Institutions – development of partnerships. Companies can collaborate with NGOs that promote sustainability by providing recyclable materials or co-creating projects of upcycling. For example, a fashion company can donate fabric scraps to an NGO that teaches sewing to underprivileged communities, promoting social inclusion and income generation;
   
6. Local Communities – company promoting social development – A company can engage with communities to develop projects that directly benefit the local economy. For example, a food factory can donate packaging remnants to local artisans, who transform them into sellable products, generating employment and income. Companies can promote events or workshops in the communities where they operate, teaching techniques like furniture recycling or sustainable fashion;
   
7. Customers – strengthening relationships and increasing sales: creating programs that encourage customers to return old or used products to be recycled or transformed into new products through upcycling. Footwear companies, such as Timberland, do this, attracting ecologically conscious consumers and improving brand reputation.

These factors, combined, help consolidate a solid and trustworthy reputation in the market, which can generate competitive advantages in the long term.