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Thursday, 25.04.2024, 15:02
Circular economy: the ways towards “conscious capitalism”
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.
http://fortune.com/2017/10/23/the-circulars-world-economic-forum-nike-method-sustainability/
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.
Source: https://www.accenture.com/gb-en/insight-creating-advantage-circular-economy
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.