Emergence of Circular Economy and its Development in Malaysia

ETHICS,
SUSTAINABILITY AND
SOCIAL IMPACT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Emergence of circular economy..............................................................................................3
2. A) Development of circular economy in Malaysia.................................................................6
B) The progress of circular economy in Malaysia focusing on factors, barriers and
opportunities................................................................................................................................7
3. Measures can be taken by companies and government of Malaysia in order to support
circular economy .........................................................................................................................9
4. Recommendations for the government ministries of Malaysia in context of circular
economy.....................................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Ethics are the subdivision of philosophy which seeks to address issues related to the
concept of what is right and what is wrong in terms of working. A code of conduct that has been
set by business organizations in order to discipline their employees efficiently is an example of
ethics. The study of principles related to right and wrong directional conduct within the company
describes the point of ethics. It is a kind of moral theory which is based on moral values which
determine the reason what makes the things right and wrong and the measures that should be
taken in order to make it successful. Sustainability is the ability to exist consistently. It describes
meeting needs and demands without compromising the future contemporaries to meet their own
needs. Social impact is the after effect on people and groups that taken as a result of any
particular activity that has been conducted within the organization (Ormazabal, 2018).
This report will describe the concept of circular economy along with its emergence. The
reason for development of circular economy, its progress, purposes to support the development
of circular economy and key recommendations for action has also been highlighted through this
study.
MAIN BODY
1. Emergence of circular economy
Circular economy is a profitable system with an intention to eliminate the waste products
and continuous efficient use of resources. This particular system gives emphasis on reuse, repair,
share recycling and re-manufacture of resources in order to build non opening hold fast system
which helps the organization in order to minimize the usage of resource inputs and thus creation
of pollution, waste and carbon emissions as well (Honkasalo, 2018). The major aim of circular
economy is to make use of resources for longer span of time, thus improves the productivity of
these resources. Waste excretion and material should become input for any other process of the
company in order to regenerate something else productive with the wastage. This process comes
under regenerative approach which includes take, make and dispose model of production. The
circular economy is more suitable than any other current economic system. Reduction in
elimination of waste, pollution control conservation of resources are some practices which has
been operated in the concept of circular economy. This economy includes equipments, products
and services which applies to each and every industry sector. Technical resources and biological

resources has been included in circular economy concept. The concept includes the discussion
related to the role of money and finance within the organization in order to sustainably attain an
ethical environment which has its positive impact on their workers or groups resulted in
productive growth. Through renting the same product to different people or several clients
minimizes the production cost and thus helps to enhance the revenue per unit cost. In such ways
the life cycle of products increases.
There is highly a need arises in recent times to adopt circular economy in our day to day
life and in organizations as well. The reason behind this approach is that the population of the
world has been increasing continuously and with the demand of raw materials as well. However,
everyone is aware about the concept that recently there is limited number of resources available
which affects the supply of crucial raw material within the environment in order to use them
effectively. There are various countries who are dependent upon other countries in order to take
raw material for their final production or products. In addition, everybody is aware that
extraction of raw materials and using them in order to solve our purposes have draws major
impact on the environment and thus on society as well. It enhances the consumption of energy
and thus increase CO2 emission within the environment (Zink, 2017). However, to reduce the
emission and control pollution, organizations use various techniques to lower down the waste.
There are various benefits that has been taken by the companies such as waste
interference, re-use of resources efficiently, etc. also helps in generating money along with
reduction in total annual greenhouse gas emissions. It has been analysed that in total approx 45%
of the CO2 emitted with the production of goods and services by organizations which drastically
affects the external environment and does create hazardous situations for society. Adoption of
circular activities helps in reducing pressure on the environment, increase competitiveness,
stimulate innovation within the environment outside as well as within the organization as well
and helps in total to boost the economic growth with creating job opportunities as well. With the
help of this concept the producers are able to give more innovative and durable products to their
customers that helps in enhancement of quality of life and thus save their money in long term.
The concept is based on recent theories which includes performance economy, cradle to
cradle, bio mimicry and blue economy that has contributes towards the further refinement and
growth of the circular economy concept (De Meester, 2019). According to the case study given
in the report, the plastic industry uses the circular economy stratey in order to reduce the waste