Ethics, Sustainability and Social Impact: The Concept of Circular Economy

This document discusses the concept of circular economy and its impact on ethics, sustainability and social development. It explores the progress and opportunities for circular economy in Kuala Lumpur, Malaysia. It also proposes ways in which companies and local government can support the development of circular economy.

Ethics, Sustainability
and Social impact

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1 ...........................................................................................................................................1
Define and discuss the Circular Economy (CE) referring to the theories from which it
emerged..................................................................................................................................1
TASK 2............................................................................................................................................4
Give examples of how the Circular Economy is developing in Kuala Lumpur, Malaysia....4
Analyse the progress of the circular economy in the Kuala Lumpur, Malaysia focusing on the
barriers enabling factors and opportunities for its growth......................................................5
TASK 3............................................................................................................................................7
Propose what companies and local government can do to support the development of the
Circular Economy...................................................................................................................7
TASK 4............................................................................................................................................8
Report for Commonwealth Local Government Ministers Meeting on key and
recommendations for action...................................................................................................8
CONCLUSION................................................................................................................................9
References:.....................................................................................................................................11

INTRODUCTION
Ethics is the concept of doing things right and wrong. Likewise, Sustainability is the wide
concept referred all over the globe in companies and country for development and growth by
implanting values (Korhonen, Honkasalo and Seppälä, 2018). Sustainability works on three
things ecological health, economic well being and cultural and social fairness. Unethical and
unsustainable practices lead to the harmful social impact like environmental disturbance,
economic downfall and reduce the opportunities for the future coming generation. Therefore the
concept of Circular economy came into existence to reinforce the environment with well being
and values, to reduce the wastage, for proper utilization and consumption of resources. The
report outlines the concept of circular economy referring its theories and principles. Further in
the report development of circular economy is described using the city Kuala Lumpur of the
developing commonwealth country Malaysia. Barriers, enablers and opportunities of circular
economy are represented. In the end recommendation is provided to the local government
ministers of commonwealth for actions related to circular economy.
MAIN BODY
TASK 1
Define and discuss the Circular Economy (CE) referring to the theories from which it emerged
Circular economy is the concept first came into existence in 2015 in the European
Union. The circular economy is basically is basically a concept which was the substitute of the
take, make dispose model and “ end of life” concept by presenting the alternatives of redesigning
and reconstruction, conveying the usage of integrated renewable energy resources, and aims to
avoid the wastage of resources and raw materials during planning in business models (Geng,
Sarkis and Bleischwitz, 2019). By referring the three theories the concept of circular economy
was emerged:
Principles of inputs: The first theory referred to design the concept of circular economy is to
keep the resources and there source balanced and controlled for the long term material flow of
the renewable energy sources and to protect and preserve the natural resources and inputs for the
future generation. The main aim of this theory is to maintain and retain the resource ODF
resources and to circulate the bundle of inputs rather than accumulating them. The purpose of
this theory is to ensure that all the renewable, non renewable raw materials and resources are
1

always accessible and visible in the economy. Additionally the consistent flow of input
materials in the cycle of economy is achieved by increasing the dimension of work. Therefore,
the activities of the input in the cycle of circular economy requires the supply of renewable
energy sources and resources free from political and economic threats and uncertainties and also
allow the safe access of secondary renewable resources with prominent supply system (Kirchherr
and et. al., 2018).
Principles of sustainable cycles:The functioning of the economy and peculiarly its growth is
dependable on the proportion of the availability of the resources. Sustainability cyclic processes
are used to ensure that production processes are regularly operating properly. If the resources
like essential raw material are not available for the production, then the growth and development
of economy is rare. Therefore the circular economy serves the offers for the route of
development to guarantee that essential resources and raw materials are always and consistently
available at all possible levels of natural raw materials cycles. This theory of sustainability cycle
aims to release the resources of the natural life cycle processes within the environment by the
shortest achievable cycles, for example: water cycle, soil nutrients circulation known as
cascades. The new resource cycle in the circular economy model is mainly developed by re-
acquiring raw materials or by modernizing the technological systems that is within the
technological cycles. It embrace the necessities for the circular economy design among the initial
stage to reduce the consumption of energy all over the product life cycle. The core of circular
economy operations in sustainable cycles hence rest in the business plan of the product and
services (Camacho-Otero, Boks and Pettersen, 2018).
Principles of outputs: The increasing efficiency of the system is acquired by examining the
processes, corresponding to the principles of circular design and also providing the existence of
redesign by which negative and positive external factors can be avoided with quality. The theory
of principles of output include avoidance of water and noise pollution, no use of plastic, maintain
good health, properly plan utilization of land and avoid any toxic substance. The main aim in the
end of the circular economy design is sustainability. In the business innovation or development
of countries the solution of economic or environmental problems are solved with the proper
allocation of resources, reuse of existing raw materials with efficiency, and re- utilization of the
means of productions. Therefore in today's world the sustainability in the output is the support of
value creation. As with this a country or a business can avoid the degrading government
2

interference. With circular economy cycle of closed loops raw material flow service system will
improve the potential outputs of the economic system and also assist by the zero waste model
(Galvão and et. al., 2018).
In society the manner of doing things are touching its limits. The criteria of doing work in
society is Take, Make and waste. Resources are taken from the environment and grounds and
used to make products what are needed and the rest of them are disposed and wasted if they are
no longer wanted. By this system and economy are disrupting therefore the change is
compulsory to create a flourishing economy that can foster and benefit everyone within the
boundary of our planet. Therefore there are three principles that are foundation of the new
system known as circular economy. The three principles are described underneath: Design out waste and pollution: the designing and developing decisions of the products
and service are the reason behind the waste and pollution which are creating the impact
on the environment. To ensure that there is no pollution and wastage, society needs to
change the mindset of viewing the waste as the flaw of design and harnessing
technology and new resources. There are new polystyrene materials, regenerative
agriculture, and there is always something valuable in waste to re utilize that a society
should consider in creating a circular economy (Berg and et. al., 2018). Keep product and material in use:The society is getting so ignorant about the
availability of the resources and their wastage. The products and material should be kept
within the economy so that they be redesigned for the reuse, or repaired and re-
manufactured. Hence materials must be get back so that are not wasted and ignored
rather than used.
 Regenerate natural system:protecting the resources and raw materials is not enough
rather society needs an active improvement in the environment there actions. Nature
must be re nourished by providing soil with nutrients and other valuable essentials to
the ecosystem to flourish the natural beauty and efficiency of the natural resources
(Sidgwick, 2019).
3

Illustration 1: The Circular Economy,2017
(Source: The Circular Economy, 2017)
TASK 2
Give examples of how the Circular Economy is developing in Kuala Lumpur, Malaysia
Kuala Lumpur is the city of the developing commonwealth country Malaysia. Malaysia is
South Asian country which is full with multi ethics and multi culture. Malaysia is putting is step
forward towards the development of its city through sustainability and ethics for the future
generation to grow with values to always protect and preserve its nature and its resources. This
is highly recognised that the South-east Asia is the most polluted with use of plastic and having
their impact on the marines and sea coast (de Spinoza, 2021). A city named Kuala Lumpur, the
capital and the biggest city of Malaysia situated in Klang valley basin of Malaysia. Water
pollution and risk of flood due the convergence of two rivers Klang and Gombak is the major
challenge of Kuala Lumpur. Therefore the city hall is using the approach of circular economy to
close the loop of plastic in the whole country to avoid the pollution on sides of seas for the
sustainable economic development and growth. The city is directly administrated by Kuala
Lumpur city hall. Hence all planning is conducted by their members. The various examples of
circular economy in Kuala Lumpur, Malaysia in development of the city through the
4

implementation of CE( circular economy) in business plans and the government polices and
initiatives is educating and encouraging the public of Malaysia to understand the concept of
sustainable economy and development are discussed underneath:
 Kuala Lumpur City Plan 2040: The urban development plan of the city from
2020-2040 consist of six principles which are totally based on the circular
economy. The plan targets economic sustainability, incorporated land management,
city greening embellishment, low carbon emission city, inclusive society and
efficient mobility. The plan helps the city in improving and developing it living
environment and implanting a unique urban personality with effective governance
(Farley and Smith, Z.A., 2020).
 Malaysia Roadmap towards Zero Single Use Plastics 2018-2030: this is the
three different level national plan implemented to abolish the use of single used
plastic. It includes employment of pollution charges, increasing stakeholders
capacity, legal and governance plan and awareness programs and activities for
public. To support this plan in 2020 circular economy plastic roadmap was came
into existence by the water and environment ministry of Malaysia. The cycle
consists of four phase production, consumption, waste management and recycling
of the plastic in closed loop. The above factor help the businesses of Kuala Lumpur
in developing as the resources are consistently circulating through best supply
chain of CER to mitigate the risk in business to grow and diversify.
 Green Technology: Many developing countries are implementing the green
technology in their operations and business plans among which Kuala Lumpur,
Malaysia is one to adopt the green technology in its production of palm oil,
manufacturing practices and mining which is fostering and driving the economy of
Kuala Lumpur and also promoting the sustainable growth and development
(Clayton and Radcliffe, 2018).
Analyse the progress of the circular economy in the Kuala Lumpur, Malaysia focusing on the
barriers enabling factors and opportunities for its growth
The circular economy model at early stage grows slowly in Kuala Lumpur due to some
barriers that are discussed below:
5

 Cultural: This barrier is all about the non willingness and disinterest of the public and
customers regarding the implementation of circular economy in the products in the
Kuala Lumpur due to the strong financial stability of the city. Technological: the unavailability of the appropriate technology to reuse, recycle, re
manufacture the waste in the Kuala Lumpur is the biggest barrier to innovate the new
cycle or products with green technology. Market: The investment cost of circular economy in relatively high and also the funds
are very less for circular economy. The low virgin prices and standardisation of raw
materials are the barriers to city to develop the concept of circular economy (Abdul-
Hamid and et. al., 2020).
 Regulatory: most pressing barrier in the development CE in city of Malaysia is
intervene of laws and regulations by the government and lacking the overall world
consensus
Opportunities for the growth of Circular economy in Kuala Lumpur
Circular economy provide the developing countries like Malaysia with sustainable
growth and also the opportunities for the growth and face challenges of circular economy. Some
of the opportunities of circular economy are:
 The plastic Pact of the Malaysia in regard of circular economy has created a opportunity
for the Kuala Lumpur to become the first city with no single use plastic promoting the
sustainable development and use of circular economy and its concept which will foster
the growth and development of city with new innovation in product and services of
companies (Isa, Sivapathy and Kamarruddin, 2021).
 The circular economy road map has rise the opportunity for the Kuala Lumpur to adapt
new sustainable and environment friendly production methods for the palm oil, mining
and manufacturing in the city to gain financial sustainability.
6

TASK 3
Propose what companies and local government can do to support the development of the Circular
Economy
Circular economy is the attracting the organisation all around the world by its principles
and growth and sustainability supporting factors. Multi national, local and international
companies and government with their policies regarding the sustainable development and low
carbon emission are supporting the circular economy in the Kuala Lumpur. The government of
Kuala Lumpur is implementing the circular economy approaches in past , present and future to
foster the employment, health and well being in citizens, reduce wastage and pollution in city
and limit or avoid the environmental impacts (Kerdlap, Low and Ramakrishna, 2019). Like wise
companies recreate their products, use recyclable products and packaging, reduce carbon
emission, say no to plastic supports the development of the circular economy not only in Kuala
Lumpur but also in Malaysia.
Few companies supporting development of CE are :
KPMG: Phang Oy Cheng is the director of sustainability and governance in KPMG, Kuala
Lumpur, Malaysia. Phang believes that circular economy is rising the bars of corporate agenda
and aims. KPMG is using the circular economy skills in the strategies and development
programmes to feed values and reputation to the firm. Thereby the concept of circular economy
is developed in the city where the company is operation in Malaysia.
IKEA: The IKEA is the firm that offers the well designed furnitures and other home furnishing
in Malaysia. The firm has recently started the circular economy project which stated that
company will take back all its products to refurbish, repurpose and resell.
Sphera: The company is supplier of integrated risk management software and information
service in Kuala Lumpur. Kuala Lumpur has various plans and policies related to circular
economy therefore company has it larger support in this plan of Kuala Lumpur by focusing on
environment, health safety and sustainability through its servings. The aim to create sustainable
and safer world.
Government policies in Kuala Lumpur supporting the development of circular economy
 Malaysia National cleanliness policy 2009: The policy of cleanliness was started in 2020
with a plan that has 14 strategies and 91 action plans to record the cleanliness and waste
all around the Malaysia and its cities to 2030. The action plan has 5 policy: awareness of
7

cleanliness, human capital development, circular economy and the environmental
sustainability(Nurhazani, Azlan and Mohd, 2018).
 Malaysia Roadmap towards zero single use plastic 2018-2030: this is the three stage
national plan to reduce and eliminate the use of single plastics. For this the government
is planning the legal frame work, implementing the fines and charges for pollution and
improving the capacity of the stakeholders. This include the complete circular economy
cycle for four stages to use, consume, recycle and resell the products with low pollution
and wastage.
 Kuala Lumpur city master plan 2040: the wide plan of the Kuala Lumpur as the
capital of the Malaysia to contribute in the circular economy of the nation and in
developing the concept at wide range. The plan is the bunch of development target
factors like low carbon emission, economic sustainability, land management, green
technology etc.
 Kuala drainage master plan: Kuala Lumpur is situated at the river sides and is part of
the highest water pollution caused due plastic and other harmful and toxic waste
materials that are not properly drained out. Therefore to overcome this challenge the city
has a drainage master plan including river engineering, pollution management and
provision of new drainage, gross pollutant traps etc. to reduce the water pollution and
their harmful effects on the health and well being of the citizens (Ponomarenko,
Nevskaya and Marinina, 2020).
TASK 4
Report for Commonwealth Local Government Ministers Meeting on key and recommendations
for action
The commonwealth Local Government Ministers Meeting on key points and
recommendation for actions regarding the circular economy are discussed below:
 The meeting should propose the key area about how the commonwealth can contribute in
the future growth through sustainability and fairness as this will develop the concept of
circular economy and also make commonwealth secure and prosperous.
 Population of the commonwealth lies under 30 therefore for sustainable and equal growth
gender equality and youth empowerment government policies and initiative should be
8

made agenda and theme of the commonwealth to encourage and educate the public of
the city like Kuala Lumpur, Malaysia and to develop the circular economy.
 For the more prosperous future a multilateral trade system should be adopted by the local
government ministry to support the locals and balance the operation of economy and its
resources as this will help in protecting the global economy of the nation and its local
cities.
 It is recommended to the ministry of commonwealth to make action plan for sustainable
development ocean as there is link between the well being and prosperity of members of
commonwealth and ocean as Kuala Lumpur is located as convergence of two rivers this
will give opportunity of sustainable economic development through rivers and ocean.
 Local ministry of commonwealth is suggested to have sustainable use of natural
resources like raw material and energy. The members of commonwealth are required to
work together with latest technology and equipment which reduce the wastage of
resources and energy have low carbon emission for wise and sustainable use of the
renewable energy and raw materials.
 Commonwealth ministry should use its values and principles of promoting the health and
well being and removing disparities and uneven living standards. The meeting should
adopt the compliance with health care policies, health and well being federation,
international health regulations etc. for treatment and palliative care. This needs the
global health action.
 It is advised to local ministry of commonwealth to take technical assistance in waste
management, climatic change initiatives, financial systems to develop the country with
sustainability and ethics of circular economy and avoid any kind of wastage or pollution
in the operation of commonwealth.
CONCLUSION
It is concluded from the above report that the circular economy is essential for the
developing countries. Circular economy is the only concept to bring ethics, sustainability and
positive social impacts all over the globe. Circular economy promotes the concept of green
growth, recycling and re usability of resources and consumption of raw materials and avoiding
the waste and pollution due to plastic in water bodies. Hence, the companies and government are
highly supporting the development of circular economy through plans and policies. Similarly,
9

circular economy is also driving the sustainable and valuable growth and development of
countries and their companies.
10

References:
Books and Journals
Abdul-Hamid and et. al., 2020. Impeding challenges on industry 4.0 in circular economy: Palm
oil industry in Malaysia. Computers & Operations Research. 123. p.105052.
Berg, A and et. al., 2018. Circular economy for sustainable development.
Camacho-Otero, J., Boks, C. and Pettersen, I.N., 2018. Consumption in the circular economy: A
literature review. Sustainability. 10(8). p.2758.
Clayton, T and Radcliffe, N., 2018. Sustainability: a systems approach. Routledge.
de Spinoza, B., 2021. The ethics. Strelbytskyy Multimedia Publishing.
Farley, H.M and Smith, Z.A., 2020. Sustainability: if it's everything, is it nothing?. Routledge.
Galvão and et. al., 2018. Circular economy: overview of barriers. Procedia CIRP. 73. pp.79-85.
Geng, Y., Sarkis, J and Bleischwitz, R., 2019. How to globalize the circular economy.
Isa, N.M., Sivapathy, A and Kamarruddin, N.N.A., 2021. Malaysia on the Way to Sustainable
Development: Circular Economy and Green Technologies. In Modeling Economic
Growth in Contemporary Malaysia. Emerald Publishing Limited.
Kerdlap, P., Low, J.S.C and Ramakrishna, S., 2019. Zero waste manufacturing: A framework
and review of technology, research, and implementation barriers for enabling a circular
economy transition in Singapore. Resources, conservation and recycling. 151.
p.104438.
Kirchherr, J and et. al., 2018. Barriers to the circular economy: evidence from the European
Union (EU). Ecological Economics. 150. pp.264-272.
Korhonen, J., Honkasalo, A and Seppälä, J., 2018. Circular economy: the concept and its
limitations. Ecological economics. 143. pp.37-46.
Nurhazani, M.S., Azlan, Z.A and Mohd, R.B., 2018. Developing a framework of corporate
governance best practice for the Malaysian tourism small and medium-sized
enterprises. Geojournal of Tourism and Geosites. 22(2). pp.447-454.
Ponomarenko, T., Nevskaya, M and Marinina, O., 2020. An assessment of the applicability of
sustainability measurement tools to resource-based economies of the commonwealth of
independent states. Sustainability. 12(14). p.5582.
Sidgwick, H., 2019. The methods of ethics. Good Press.
11