A sustainable business model in action : environmental and social performance : a case analysis in the wine industry

Abstract

The aim of this research is to analyse Viña Concha y Toro S.A.’s (VCT) strategic business model (SBM). A Chilean based company, VCT is considered Latin America's largest wine grower. The case study is focused on two of the three core elements of the value proposition, namely environmental and social performance. Towards this end, we use as a framework for analysis the CSR disclosure index (Gamerschlag et al., 2011), Bocken et al.’s (2014) SBM archetypes, and established GRI sustainability performance indicators as reviewed in VCT’s Sustainability Reports over seven years, between 2012 and 2018. Based on this research strategy, extensive content analysis was undertaken on the company’s annual sustainability reports, followed by a complementary in-depth interview providing for qualitative insights. We can conclude that VCT represents the manifestation of a SBM as defined. Sustainability fundamentals are explicitly present in the vision and mission of the company. The value is created for all stakeholders, and coordinated activities are undertaken and implemented with partners and suppliers – impacting the broader wine industry. Analysis of VCT’s sustainability strategic orientation showed that the company made permanent advances from 2015, with an emphasis on social aspects rather than environmental ones. In 2020, the definition of VCT’s strategic orientation is in progress, with focus directed towards the principles of ethical trade, which involves fair wages and human rights, among other issues. The sustainability performance indicators from GRI reports, show positive results in the environmental and social aspect. The company has different SBMs, which coexist with each other, this confirms the theoretical framework used, which postulates that the services rendered by the firm’s unique bundle of resources and capabilities may lead to value creation, as posited by the Schumpeterian innovation and the Resource-Based View (RBV) fundamentals. The study provides an empirical study on SBM and demonstrates that the generation of SBMs is multidimensional and complex.