One-way model of business to manufacture and consume products is dominating in our industrial processes from the last 150 years. In this model, organizations purchase raw material of fabric, wood, stone, or plastic to manufacture a product and sell it out in the market for consumption. Increased population has increased consumption rate and production rate. Things becoming useless after consumption are causing to increase pollution in our environment. Polluted land and sea water with chemical, used plastic and broken wood products are unhealthy for the survival of human being and all other living creatures. Considering the impact of waste materials organizations are now paying attention to the recycling, reuse, and waste elimination methods. A leading concept regarding this waste elimination and reuse of manufactured goods is known as the circular economy (Sillanpaa & Necibi, 2019).

According to historical analysis, in the early 1970s, the concept of the circular economy was presented for the first time as an alternative concept to the traditional linear model of the economy. The circular economy which is an advanced concept focuses on the methods to save the environment from pollution and unhealthy industrial practices. In this present work, the circular economy (CE) is the key concept to discuss. Present work will project theories and concepts behind the circular economy (CE). Barriers which can cause challenging situations for the companies interested in the implementation of the circular economy (CE) concept are also presented in this report. Additionally, examples are given to show which companies have successfully implemented the circular economy (CE) concept in practices (Wautelet, 2018)

Circular Economy

A circular economy (CE) concept is known as a substitute for the traditional linear economy. In the traditional linear economy concept, we keep our purchased organizational resources in use as long as possible just for the purpose of generating maximum profit from these purchased resources. These resources can be materials and equipment. Circular economy (CE) concept is based on a circular business model in which different ways and methods are used to produce goods and services. Circular economy (CE) concerns with all stages in the circular business model while focusing on waste elimination concept. Circular economy (CE) reduces organizational waste to save the environment and support the economy (Foundation, 2011). Under this concept, waste is not considered as waste but in fact, a source of reproduction. As someone said to support circular economy concept:

“Waste isn’t waste until we waste it” — [Will.I.Am, musician]

In the industrial system, the circular economy shows regenerative and restorative by design and intentions. Basically, the first aim of the circular economy (CE) is to design out organizational waste. It concerns with designing a product with biological ingredients to make disposal easy and safe for the environment. Circular economy (CE) also pay attention to the recycling of plastic, food waste, toxic chemicals, to eliminate waste and generate renewable energies. Durable and environment friendly products and services decrease waste and increase system resilience.  

According to Wrap.org.uk, the circular economy is highly important for organizations as it creates new opportunities for organizational continuous growth and effective circulation of the economy. (Wrap.org.uk, 2019)The circular economy is important as it reduces the environmental impact generated by industries and delivers a relatively more competitive economy.

References of  Circular Economy

Foundation, E. M. (2011). Re-thinking Progress: The Circular Economy. Retrieved October 24, 2019, from www.youtube.com: https://www.youtube.com/watch?v=zCRKvDyyHmI&t=60s

Sillanpaa, M., & Necibi, C. (2019). The Circular Economy: Case Studies about the Transition from the Linear Economy. Elsevier.

Wautelet, T. (2018). The Concept of Circular Economy: its Origins and its Evolution. Science Direct, 1-22.

Wrap.org.uk. (2019). WRAP and the circular economy. Retrieved October 24, 2019, from www.wrap.org.uk: http://www.wrap.org.uk/about-us/about/wrap-and-circular-economy