Ethics, Sustainability, and Social Impact in Circular Economy

ETHICS, SUSTAINABILITY
AND SOCIAL IMPACT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Discussion relating to Circular Economy referring to different theories from which it emerged
.....................................................................................................................................................3
Circular economy being developed in city..................................................................................5
Barriers to growth and factors enabling support of growth of circular economy in city............6
Actions to be taken by companies and local government...........................................................7
Commonwealth Ministers action and recommendations............................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
For the business to be successful the most essential aspect is the management of the
ethics, sustainability and social impact of business. This is very essential for the companies to
have good strategies for the effective management of the ethics and the sustainability. This is
pertaining to the fact that when the company will not be following the ethics and focusing on
sustainability then this will affect the working and goodwill of the company to a great extent.
The ethics and social responsibility and sustainability refer to as following the moral principles
of working and taking care of the environment and society (Zink and Geyer, 2017). For any
business to be successful this is the most essential requirement. Thus, they have to ensure that the
ethical values and sustainability along with social impact is managed and maintained by the
business. The present study is based on the circular economy and how it has emerged. Along
with this the report will discuss the city under the Commonwealth country and the examples that
how circular economy is developing within that city. In the end recommendation will be
provided in support of development of the circular economy.
Discussion relating to Circular Economy referring to different theories from which it emerged
A circular economy is being defined as the systematic approach for the economic
development that is designed for the benefit of the business, environment and the society. This is
a concept which is regenerative in design and the main aim is to decouple the growth of the
economy by the finite consumption of the resources. This CE involves the difference among the
biological and technical material along with the different opportunities which are existing in
order to keep the product in use. This CE involves the understanding relating to the importance
that economy need to work effectively at all different level of scales whether small or big
business either globally or at local level. The concept of the circular economy is based on three
principles that involve designing out the waste and the pollution. Along with this another
principle is to keep all the products and material in use (The circular economy in detail, 2017). In
the end the last principle states to regenerate the natural system so that production can take place
in effective and efficient manner.

On the other side Kirchherr, Reike and Hekkert (2017) states that the CE is a type of
model relating to consumption and production that involves the leasing, repairing and recycling
the existing material and product in such a manner that it is used for a longer period of time. The
major aim of the circular economy is to eliminate the waste by superior designing of the product
and system so that there is not any error and resources are being used in optimum manner. in
addition to this the concept of CE also focuses on improving the concept of reuse and recycling
the product so that there is proper and optimum utilisation of the resources. This circular
economy assist in revealing and designing the negative impact of different activities which
causes damage to the health and natural system of the economy. This involves the use of the
different greenhouse gases and different hazardous substances which lead to pollution with the
air, water, land along with structural waste such as traffic congestion.
The second principle of the CE states and focuses on the fact that an economy must be
build which uses things rather than using them up. This simply means that this economy favours
the activities which preserve the values in the form of labour, material and energy (Morseletto,
2020). This in turn means that the designing within the economy must take place as per the reuse
of material, recycling and remanufacturing of the product in order to keep the components and
material circulating within the economy. This involves use of bio- based material so that this
does not affect the economy and the natural system and can be reused and recycled in effective
manner.
Along with this the third principle states to regenerate the natural system in order to
improve the environment. This CE avoids the use of the non- renewable resources in order to
preserve the renewable resources. For example by returning the valuable nutrients to the soil in
order to support regeneration by using the renewable energy which relies on the fossil fuels.
This concept of circular economy has been evolved from the model of the ‘take- make-
waste’ which is the linear model. This model is focused on the taking from the environment in
the form of the resources and then converting that is making them into some productive product
or the service. This further involves the wastage that comes from the system of production.
Hence, the model has three major points that is take which means taking from environment.
Further it involves make that is making and developing the product and service (Kirchherr and
et,al., 2018). In the end comes the waste that is wastage that comes from transforming the raw
material into the finished goods. Hence, the concept of circular economy comes from this model