Circular economy as a driver to sustainable businesses

Abstract

Circular economy can play an important role towards sustainable business management and it can be seen all throughout an organization. Although the current literature regards the circular economy as a guide for more sustainable business models, it is not clear the main implications to key business areas. Therefore this study aimed to present the key impacts of circular economy practices within different business areas that help guide a sustainable management of businesses. To that end, it was identified, by means of a systematic review of the existing literature, the business areas impacted by circular economy practices within an organization. The business areas identified were strategic planning, cost management, supply chain management, quality management, environmental management, process management, logistics and reverse logistics, service management, and research and development, allowing a discussion on the main contributions of the circular economy to each area. A key-impact map was provided summarizing the most influential changes in each area that assist in the management of businesses towards greater sustainability. It is important that organizations understand and accurately internalize circularity principles within their strategic plan. On that note, adopting a circular thinking might enable an organization to obtain more sustainable (economic) results while reducing impacts.

Keywords

• Circular economy
• Sustainable business
• Business management
• Circular business model
• Sustainable practices