Circular Economy and its Theories: Impact on a Developing Commonwealth Country

ETHICS,
SUSTAINABILITY AND
SOCIAL IMPACT
Table of Contents

INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1 Define and discuss the Circular Economy and it's theories..............................................3
P2 Choose a city in developing commonwealth country and respond to the following........5
P3 Propose what companies and local government can do to support the development of the
circular economy....................................................................................................................7
P4 Report for commonwealth local government ministers meeting on key and
recommendations for action .................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES .............................................................................................................................10

INTRODUCTION
International business relates to conduction of business activities across the various
countries of the world. With the introduction of globalisation it gave opportunities to respective
businesses firm to operate amongst various business organisations across the world. It opened up
barriers and trades on a friendly agreement between two or more nations in which respective
business enterprise were able to sell their products and services to customers around the
world(Burger and et. al., 2019). However, management of business firm encounters various non
business entities likely government bodies, NGO's and supranational organisation while
conducting their activities globally. Most of the times policies been formulated in an organisation
including conduction of intensive research and with huge investments of resources, unfortunately
have to be compromised due to these non business bodies (Cherunilam, 2020). This report will
focus on impact of circular economy on a developing commonwealth country referring to
various theories from which it is been emerged. In addition to that, it will highlight role of
concerned government body for reviving economy of the nation. It enhances extraction of
maximum outputs from lesser amount of inputs assuring minimum use of resource inputs and
avoids it's unnecessary wastage
MAIN BODY
P1 Define and discuss the Circular Economy and it's theories
Circular Economy refers to an economic system which is highly aimed avoiding wastage
of natural resources being used in conduction of business activities and ensures their availability
for future generations. It works on the principle of reuse, repair, sharing, refurbishment,
recycling and re-manufacturing for ensuring effective utilisation of resources (De Angelis,
2018). As by introduction of digital tools that helps businesses firm to explore wide area of
market customers and respective business are provided with good development opportunities. By
making use of proper circular economy system, it's management can grab those opportunities for
completion of business objectives of maximization of profits through boosting up of companies
sales.
In 1976, Stahel and Reday drawn out vision of utilising resources in a loop and also
related their affects on job creation, resource prevention and economic competitiveness. The

model of Circular Economy (CE), is an essential tool which is been used up by various industries
to attain it's objectives of optimum utilisation of resources. It focuses on redesigning raw
materials been used in production process which helps tapping renewable energy and provides
effectiveness in production activities (De Jesus and Mendonça, 2018). By acceptance of the fact
that in any organisation there is a possibility of wastage of resources working in this fact, it's
principles are bases in utilising those waste materials through circular design of material use,
system applications and product use. The emergence of CE is been based on some certain
principles and theories. It works on the following theories followed by some basic principles
which are as follows:
Principles of Inputs: This principle of CE works on keeping usage of natural resources
used in respective activities of the business firm under controlled. It balances the flow of
materials of renewable energy in order to preserve natural resource systems. For ensuring
availability of resources, renewable and non renewable resources, it follows concept of flow
management that aims at continuous rotation of business stock instead of accumulating them. It
helps a business firm in avoiding conditions of dead stock and provides effective management
techniques to ensure such conditions which ultimately contributes to boosting up of sales of a
business organisation (Demirel and Danisman, 2019). It enhances building up of better goodwill
of business firm motivating business customers to buy companies products and services by
providing them best quality at reasonable prices.
Principles of sustainable cycles: This principle focuses on the fact of availability
resources to a respective firm. It helps management of a firm to make good planning strategies
for it's effective operational activities and also modifies various policies been formulated keeping
in mind availability of resources and changes in current marketing trends (de Sousa Jabbour and
et. al., 2019). It provides better direction to management of the workforce providing better shape
to it's strategies with a motive to improve effectiveness of the firm with respect to it's various
operational activities. The main aim of this principle is to produce raw material of biological
cycle processes for it's application in environment by following shortest possible cycle also
called cascades.
Principles of output: This principle tells about effective result following the above
principles. It identifies processes adhering to principles of original circular design and also
provides possibility of redesign from which the management of a firm various externalities