Transitioning Corporate Models and Processes Towards Sustainable Practices and Adopting a Circular Economy Approach

Abstract

The upper management of many firms is increasingly prioritizing the ramifications of rapid global warming, depleting resources, and the escalating loss of entire ecosystems. The onus of resolving the ensuing issues is entrusted to political or social entities. Nevertheless, the growing consciousness among consumers and the general public regarding price fluctuations and scarcity issues in the supply of raw materials, along with the adherence to corporate laws and the value chain, are exerting mounting pressure. In this regard, the sustainability of a company serves as a competitive advantage. This initiative is strategic and presents substantial opportunities for growth. The circular economy, which is an eco-friendly kind of economics, integrates both ecological and economic advantages. Adopting circular business models, which deviate from linear consumption and prioritize sustainable decoupling of economic growth from resource use, is crucial for the advancement towards a circular economy. Linking commercial interests with ecological forms of the economy is a necessary condition for initiating a process of reevaluation. It is a subsidiary corporation. Within the literature, numerous methodologies exist for developing novel circular business models that incorporate sustainability considerations.