Esmail Tavakolnia
Yaqi Zhao
Md Faik Hamza Faruqui
Balázs Szij
Hanken School of Economics
Martin Fougere
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Introduction
In this article, we focus on the Middle East, notably Iran—but not the well-known capital, Tehran. In many nations, including those with tremendous wealth, the gap between the affluent and the poor remains wide. This gap is frequently reflected in the significant variations between living in major cities and smaller communities. As one goes farther from the capital, less resources and opportunities become available. Our attention goes to the northeastern portion of Iran, to a little town named Bojnord. Bojnord, while being far smaller in size and population than Tehran, offers a distinct viewpoint on the issues that its citizens confront. In this city, a lady decided to make a difference.
Business Overview
RZSBRC produces handcrafted products in Iran, including carpets, gloves, and caps. The firm wants to give underprivileged individuals meaningful employment opportunities so they may use their special skills to create high-quality products. This company idea aims to integrate disabled persons into the workforce and promote social interaction in order to enhance their financial independence and mental health. In addition, the organization educates clients on the necessity of assisting underprivileged communities and promoting social responsibility.
Innovation Overview
RZSBRC's innovation stems from its unique business strategy, which focuses on creating economic possibilities for people with disabilities by employing their skills to make handcrafted textile items. This directly supports SDGs 8 (Decent Work and Economic Growth) and 10 (Reduced Inequalities) by boosting workforce inclusion and meaningful employment. Furthermore, by creating sustainable jobs and using recycled materials into its production process, the company supports SDGs 1 (No Poverty) and 12 (Responsible Consumption and Production).
RZSBRC’s innovation revolves around creating meaningful employment opportunities for individuals with disabilities by utilizing their skills to produce handmade goods. The idea emerged when the founder started a center supported by government funding to assist disabled individuals. However, securing these payments was a challenge, and the funding was often insufficient or delayed. As the number of people seeking help grew, the founder became dissatisfied with this unsustainable model. She soon started thinking about how these people can be enabled and trained to be self-sufficient and give back to the society instead of depending on the government.
After much study, she advanced the novel concept of establishing permanent jobs that would enable disabled persons to harness their potentials and skills, hence working effectively with the economy. As one representative stated, "We noticed that many physically disabled individuals were around our company seeking financial assistance. This got us thinking—how could we transform these individuals from being dependent on help into valuable contributors, both for themselves and for society?"
The innovation began with a focus on producing handmade carpets, but as the business grew, the company expanded its product line to include items like hats and gloves. This expansion allowed RZSBRC to incorporate even more disabled workers into its operations and reach a larger market.
The company’s very motivation for growth leads many factors beyond financial gains, one of them being the social impact. To put it, the company argues, “Our program does not only measure success in profits: it changes people, it creates chances and those people again feel connected to the community.”
The inspiration for RZSBRC’s innovative business model came after observing a growing number of physically challenged individuals seeking financial aid, she was driven to create a more sustainable solution. Her goal was to move beyond temporary government subsidies and empower these individuals to contribute meaningfully to society. As she explained, “This got us thinking—how could we transform these individuals from being dependent on help into valuable contributors both for themselves and for society?”
Her motivation went beyond financial assistance; she recognized the need to address the emotional and mental challenges faced by disabled individuals. Many of them were feeling lonely and alone. She was contemplating: "By offering them a chance to work, we are not only addressing their financial needs but also significantly improving their mental well-being." This comprehensive approach was fundamental to the concept, which aimed to bring long-term social benefits through meaningful work.
Driven by a goal for both social and financial sustainability, she carried out this concept by designing handcrafted goods that enabled these people to use their skills and contribute to their communities.
The short-term impact of RZSBRC’s innovation was immediate for both the business and its employees. Financial success and improvements in the mental well-being of disabled workers were among the earliest outcomes. By offering stable employment, the company gave these individuals a renewed sense of purpose and belonging, as noted by the manager: “They feel a renewed sense of purpose and connection which has a profound impact on their overall quality of life.” This boosted staff morale and contributed to greater productivity, while also increasing product quality through careful, handcrafted work.
The long-term influence of the innovation may be observed in the company's consistent financial growth and increase of its customer base. Customers are increasingly appreciating the company's social responsibility activities, understanding that by purchasing things, they are contributing to a larger cause. She stated, "The market has grown steadily, almost doubling annually over the last year," indicating a high demand for the company's socially responsible products. This expansion has enabled the company to become more sustainable and to recruit more handicapped people, broadening its social effect.
Sustainability and environmental effects of the innovation are significant, too. RZSBRC reduces wastes and encourages ethical use of resources by incorporating secondary and recycled raw materials into the production processes. Empirical proofs being the increasing number of employed disabled people, improving customer loyalty, and the sustainable performance of the company clearly illustrate that this innovation is serving its purpose and can be extended to other areas as well.
RZSBRC has seen substantial commercial success and social effect after moving its attention to the textile sector and including handicapped persons into its production process. Originally started as a business initiative reliant on government subsidies, the company's transition into textiles was a watershed moment. Since then, RZSBRC, branded as "Royesh," has raised revenue through product diversification, offering high-quality clothes, gloves, and carpets. The unique branding, which highlights that their products are handmade by individuals with disabilities, has opened new market opportunities, resulting in annual revenue growth that has nearly doubled. This socially conscious business model has enhanced customer loyalty and expanded their market reach.
The company's innovation has benefited employee well-being by offering meaningful work to people with disabilities, resulting in greater employee retention. As the company evolved, it not only increased income but also extended its personnel by adding people from all backgrounds. This strategy has generated new investment opportunities, as investors and partners become more interested in socially responsible firms. Overall, including social ideals into its business strategy has resulted in both financial development and long-term social advantages.
RZSBRC's innovation has a huge social impact by giving meaningful work possibilities for impaired people. This effort has revolutionized people's lives by providing jobs that not only helps their financial condition, but also their mental and emotional well-being. Many of these individuals previously faced isolation and depression, but the company’s inclusive approach has created a supportive environment where they can feel valued and connected. By focusing on employing handicapped people, RZSBRC has minimized employee loneliness and assisted them in reintegrating into society.
In addition to social advantages, RZSBRC has included ecologically responsible techniques into its operations. For example, the company employs recycled materials in its packaging and manufacturing processes, notably in the carpet industry. This eliminates waste and promotes environmentally friendly production processes. The company's long-term mission is to achieve a balance between profitability and social and environmental responsibility, proving that businesses can thrive financially while also benefitting society and the environment. This comprehensive strategy enables the organization to achieve its social and environmental objectives while encouraging inclusion and sustainability.
Furthermore, by merging social inclusion and environmental sustainability, RZSBRC has achieved tremendous strides. Their activities have not only assisted underserved groups, but have also helped to lessen their environmental footprint. This balanced approach to economic development while encouraging social and environmental change serves as a model for other firms, illustrating how profitability and positive societal repercussions may coexist effectively. With these successes, RZSBRC continues to advance diversity, community well-being, and sustainability on a larger scale.
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Maryam Shakeri, Senior Advisor to the CEO and the manager of this innovative project
Royesh Zehn Saman Bojnord Rehabilitation Company (RZSBRC) is a socially conscious enterprise based in Iran that produces high-quality handmade textile products; including carpets, gloves, and clothing. The company focuses on employing individuals with disabilities, providing them with meaningful employment opportunities. Through this inclusive approach, RZSBRC promotes social integration, enhances the well-being of its employees, and fosters financial independence for underprivileged groups. In addition to its social mission, RZSBRC adopts sustainable practices by using recycled materials in its production process.