BUSINESS ETHICS AND SUSTAINIBILITY

INDIVIDUAL ASSIGNMENT

TOPIC- CIRCULAR ECONOMY

Submitted by

Shiva Sambhawi- PGFA2147

JAIPURIA INSTITUTE OF MANAGEMENT, NOIDA

A-32 A, Sector 62, Institutional Area, Noida- 201309 (U.P.)
A circular economy is an economic model whose goal is to generate goods and services in a
sustainable manner, which includes minimizing resource consumption and waste (raw materials,
water, and energy), as well as waste creation. A circular economy is one in which markets incentivize
product reuse rather than trashing them and extracting new resources. In such an economy, all types
of trash, such as clothing, scrap metal, and old technology, are recycled or repurposed.
The circular economy seeks to shift the paradigm away from the linear economy by minimizing
environmental impact and resource waste, while enhancing efficiency across the product economy.
Recent concerns about trash pollution and natural resource scarcity are fostering the growth of a
circular economy.

Circular economy principles- The circular economy spans a broad range of

industries and may be broken down into seven complementary patterns of production and
consumption that make sense and support one another when combined.
 SUSTAINABLE PROCUREMENT: development and implementation of a
responsible purchasing policy.
 ECODESIGN: process of reducing the environmental impacts of a product or service
throughout its life cycle.
 INDUSTRIAL AND TERRITORIAL ECOLOGY: search for eco-industrial
synergies at the scale of one company can become the resources of another one.
 ECONOMICS OF FUNCTIONALITY: collaborative economy that favors use over
possession and thus tends to sell services related to products rather than the products
themselves.
 RESPONSIBLE CONSUMPTION: rational consumption and choice of products
according to social and ecological criteria.
 EXTENDING THE DURATION OF USE: through repair, reuse and repurpose.
 RECYCLING: treatment and recovery of the materials contained in collected waste.

Benefits of circular economy- The primary objectives and benefits of a

circular economy are as follows:
 ENVIRONMENTAL: The first advantage of a circular economy is environmental
protection, which is accomplished by minimizing waste and greenhouse gas
emissions, systematizing recycling, and eliminating planned obsolescence.
Additionally, the circular economy enables us to reduce our reliance on resource
imports (raw materials, water, energy)
 ECONOMIC: Another significant benefit of the circular economy is that it fosters
innovation and economic growth, potentially improving national enterprises'
competitiveness in the long term.
 SOCIAL: Additionally, the circular economy generates jobs and enables individuals
to save money, therefore lowering unemployment and poverty and mitigating the
societal consequences of pollution and climate change.
Circular economy challenges
 INSTITUTIONAL- Rules and regulation must be amended to support and promote
the growth of the circular economy on a national and international level. Indeed,
boosting local government policies to facilitate implementation and enacting clear
legislation are critical for accelerating the shift to circular economy business models.
 ECONOMIC- Business change is an expensive endeavor. As a result, financial
incentives are critical for the circular economy to succeed. Reduced VAT on recycled
items and increased taxation on original raw materials are two possible strategies for
accelerating the adoption of circular economy projects.

In today's economy, we extract materials from the Earth, manufacture things, and finally
discard them as garbage — the process is linear. By contrast, in a circular economy, we
prevent waste from being created in the first place. It is based on a shift toward renewable
energy and materials. Economic activity is decoupled from the consumption of finite
resources in a circular economy. It is a robust system that benefits business, individuals, and
the environment. We must reform every aspect of our take-make-waste system, including
how we manage resources, manufacture and utilise things, and dispose of materials. Only
then will we be able to establish a vibrant circular economy that benefits everyone while
remaining within the constraints of our planet.