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International Internet Magazine. Baltic States news & analytics Tuesday, 23.10.2018, 06:50

Circular economy: the ways towards “conscious capitalism”

Eugene Eteris, RSU/BC, Riga, 06.11.2017.Print version
Political, economic and business circles need sufficient resilience in modern time facing increasingly changeable, uncertain, and unpredictable challenges; more than that, the countries have to manage these challenges properly through adaptive approaches to national political economy structures.

The circular economy’s most basic principle is to replace the current dominating wasteful linear economic model. Instead of policies relying on finite resources, the new rational policies shall conduct sustainable economy’s patterns and business.


Circular approach provides new kind of renewable resources: waste is removed at every stage of production and/or manufacturing, from sourcing to recycling. In this way “circularity” helps to create a development policy and business models that restore and regenerates, rather than depletes and throw away available resources.


In short, circular approach analysis the ways the new products are made, who makes them, and where, as well as how those products are recycled and sustainably used.  

Changing business patters

The role of business within this new reality is changing profoundly: businesses have been playing a critical role in helping solve the mentioned challenges providing optimal services and solutions. In fact, businesses that do not adapt their models run the risk of eroding trust and ultimately, forfeiting customer loyalty.


Contemporary managerial models are facing with numerous uncertainties: from critical national agendas, to declining natural resources, to the changing skills required for employment. These and plenty of other challenges make forward-thinking leaders and politicians a task, according to Fortune Magazine, to “adopt conscious capitalism through the incorporation of key elements like trust, collaboration, and stakeholder orientation into day-to-day business practices”.


Most important is that companies wishing to be competitive need to adapt to the circular economy principles and new sustainable orientations. And it is going to be a profitable orientation: for example, the Accenture research shows a potential $4.5 trillion reward for achieving sustainable businesses by 2030. 



In fact, adopting a circular economy model is not simply about products and services but also about the ways a country’s business community is functioning. In this way “circularity” can present an opportunity to move beyond simple sustainability standards towards solutions that are able to transform traditional business models into approaches that can create a competitive advantage in Europe and the world.  

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