Thursday, December 2, 2021
Connecting Innovation


Industry 5.0: Social Awareness and Sustainable Business Practise

What is industry 5.0? What are the shifts that organisations will need to make in order to transition?

By Matthew Egan , in Future Ways of Working Management , at August 31, 2021

The European Union has recently released a white paper outlining Industry 5.0. The key transition from this shift to the concept of Industry 4.0, is the need for organisations to shift from shareholder value, to stakeholder value. Stakeholders are defined as the community at large, meaning there is a shift in focus to concentrate on key pillars that provide prosperity beyond just jobs and growth, placing the wellbeing of the industry worker at the centre of the production process.

What is prosperity:

It challenges organisations to rethink the role of their industry in society, some of the key ways which research put forward in the Stanford Social Innovation Review suggests this can be done is by:

Creating a new entrepreneurial genre: starting from the management layer, organisations should be seeking to focus on technology and innovation that has a focus on the social needs of a community and looks to safeguard economic sustainability.

Creating shared value of social and economic outcomes: ensuring that the economic consequences of the industry have a positive social impact.

Balancing opportunity and purpose: rethinking the way organisations approach investment, ensuring this aligns with social outcomes built on real purpose and not just profit.

Integrating business with science and technology: forging a stronger relationship between the social entrepreneur community and the science and technology community. Encouraging the two to collaborate on creating “tech for good” initiatives.

The numbers:

Only 0.2 percent of all start-ups are tech-for-good companies, and only 210 of the more than 10,000 start-ups in Italy are socially oriented.

Quotes:

“The world’s leading nations are sitting at around industry. 4.0…the Australian industry is regarded by many around the world as hovering around industry 2.0 and some might argue maybe as industry 3.0.”

“Our opportunity is to hop skip and jump over industry 5.0.” – CEO and Chairman of the Dow Chemical Company as reported by InnovationAus.

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