Impact of Circular Economy on Developing Commonwealth Countries Report

This report delves into the concept of the circular economy, defining its principles of reuse, repair, and recycling, and discussing its theoretical underpinnings. It examines the circular economy's impact on a developing Commonwealth country, using London as a case study, analyzing its progress, barriers such as government regulations and waste management issues, and opportunities for growth in the current market. The report proposes strategies for companies and local governments to support the circular economy's development, including government approaches and business initiatives. It also provides recommendations for action, aimed at promoting sustainability and ethical business practices within the context of international business and social impact. The report emphasizes the importance of sustainable practices for future generations.

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

approaching their respective business tasks. It works on basic principles of proper planned use of
land resources followed with avoiding noise and water pollution in various activities performed
in an organisation (Dewick and et. al., 2020). This principle focuses on adoption of more
innovative techniques in conduction of respective activities in order to optimum utilisation of
resources of firm which ultimately contributes towards increasing marketing presence of the
business firm. This helps the firm in increasing brand loyalty of their respective customers
P2 Choose a city in developing commonwealth country and respond to the following
Give an example of how the circular economy is developing that city
According to Wayne Hubbard, economy of London a city in UK is been based in “take,
make, dispose” model. But as analysing current marketing demands and growing population this
approach will shorty be inapplicable by seeing unpredictable changes in needs and wants of
respective people living in the city. As it is been analysed that net population growth of the city
will rise from about 4 billion to 5 billion as in upcoming years i.e. 2022-2028. Hence there is
high demand for developing and adoption of new strategies as well as methods for controlling
usage of limited natural resources for assuring their availability to future generations. As rise in
middle class composition in population of concerned city, there is more demand for sustainable
approaches to get into implementation. As analysed by marketers of respective business firms for
about 90% of rational consumers believe in adoption of effective utilisation of resources and
welcomes environment friendly techniques used by companies while producing it's respective
products or services. As by following these analysis management of various companies in the
city adopted ethical way to produce and deliver their branded products which in turn was
accepted by respective consumers in the city (How the circular economy holds the key to
London's sustainable growth, 2019).

(Source: How the circular economy holds the key to London's sustainable growth, 2019)
In addition to this, to help spread of effective sustainable business practices, London
waste and Recycle Board launched it's first ever Circular Economy in previous year. The city
being most famous business hubs through out the world showed the example of effective
conduction of operational business activities with fulfilment of their responsibilities towards
society as well. As to highlight the matter of fact, carrying respective social responsibilities in a
business firm is considered as a burden and these activities are only been carried out to maintain
goodwill of the concerned firm. But respective businesses in city London proved to the fact that
these responsibilities should not be treated as burden of cost to management of form with light to
the fact by providing proper theories and principles of CE it could be proved beneficial for them.
In context to London based businesses, which is also been known by cities amazing sustainable
innovators and entrepreneurs, therefore in order to speed up countries economies they were all
brought together regardless of their scale of operations small or large scale. As if past week in
2018 is taken into consideration which was a great success hosting policymakers, businesses,
actors and entrepreneurs. It was designed to coming together of various business organisation to
explore benefits of circular approaches as mentioned in CE (Fratini, Georg and Jørgensen, 2019).
The second circular week for the city is been currently in progress and is been aimed at four
times more productivity then the previous one. It will be including making up of workplace more
suitable for working and will work on the principles of boosting up of moral of respective
employees working in the workforce. It helps in extracting best of their abilities and contributes
towards effective achievement of organisational objectives.
Development of CE in London

Analyse the progress of the circular economy in that city focusing on the barriers, enabling
factors and opportunities for it's growth
As decided by financial corporates in London to accelerate there transitions towards CE,
many representatives from EU came for an inspection to find out it's role in boosting countries
economy. London Waste and Recycle Board shared statistics of the city progress with visitors
from 7 different EU with respect to CE projects. The current CE project that is EU funded
project, it aims at providing better growth structures to eight different regions of Europe to
overcome respective barriers to a CE (London highlights progress with circular economy
transition, 2018). Various barriers being faced with context to respective city are as follows:
Barriers to CE in London
Government regulations: Due to implementation of various laws and regulations by
concerned government of the nation there might be a possibility of wastage of efforts with
business resources. This barrier mostly affects beverages and food industries as there is a higher
risk to the business in dealing with health related products and services to their customers. For
instance looking at current pandemic situation of COVID-19, which caused huge downfall in
sales of food and beverages industries as during the course people avoided eating from outside.
Lack of waste management systems: In this barrier due to improper waste management
systems, the resource that could be reused is been thrown in rivers and oceans that leads to water
pollution. If these practise is been followed for long as by an estimate by 2050 there will be more
plastic waste then fished in oceans (Hamilton and Webster, 2018). This issues in more on the rise
on developing countries due to lack of waste infrastructure many factories waste is been
deployed in seas and oceans causing chain pollution.
Rise in population: Due to excessive rise in population which is the main concern of
most of the nations. Even if a nation is following sustainability principles due to excessive rise in
population of respective nation it leads to intensive usage of natural resources (Kouhizadeh, Zhu
and Sarkis, 2020). This is treated as human development victory but is a threat to respective
environment of the nation.
Opportunities of growth to London by using CE
Current market: As per current marketing trends that speaks about demand of quality
products and services. The preferences of demands of respective customers were being switched

to consumption of quality products then low prices products. Due to current pandemic consumers
started to consume quality products for assuring safety of their healths.
Being part of EU: The city of UK being part of EU have a wide opportunities to rage
their products and display them in large market area. The business of London is been provided
with good support of government of UK and is also been franchised by EU (Martins, 2018). It
enables management of the firm to compete on international basis with support to that respective
government contributes in introducing favourable business policies setting up of proper financial
institutes to respective business firms in the nation.
P3 Propose what companies and local government can do to support the development of the
circular economy
Government Approaches
For driving out CE in city London, along with various companies, product designers and
manufactures, government plays an important role in advancing to the culture of circular
economy. By conduction of various activities including modification of legislative agendas
public services and developing strategic programs government of the nation provides an effective
way to conduct respective business activities throughout the nation (Rajput and Singh, 2019).
Various steps taken by government of London in order to give proper shape to Circular Economy
are as follows:
Public Commitments: By giving strong as well as faithful commitments with regards to
regulation business authorities of the nation, it enables respective business firms to conduct their
business activities with full support by it's government and is able to decide it's strategies with
full freedom.
Regulations: The government of London, focuses on formulation of appropriate laws and
regulation that helps respective business firms to operate in dynamic business environment. It
imposes the policy of using up of recycled products and imposes less tax and duties on those
products (Maalsen, Burgoyne and Tomitsch, 2018). Making up of recycled and reused products
by an organisation is much more easier and friendly techniques to provide success to a business
firm in maximization of their sales activities.
Developing of Waste management systems: It is the most highlighting concern of most
of the developing nations. Due to lack of development of waste management systems many

factors and industries are forced to dump their recyclable waste products into seas and oceans
that leads to pollution chain in the nation.
Company Approach
As analysing up of importance of CE approach that helps in making a good environment
for future generations. For better functioning of CE for the nation UK, respective businesses in
London follows an excellent approach that helps business to conduct their respective operational
activities effectively with keeping in mind it's social responsibilities towards the society:
Practise more closed-loop recycling: As by the classification there are open and closed
loop recycling. With context to closed loop recycling process it includes reusing of steel, glass
and aluminium(Cheung and et. al., 2019). These types of materials can be used continuously and
could help business firm to carry their mode of operations more effectively.
Rent instead of selling: no matter to the fact that recycling proves to be better approach
for sustainability, however the effect of this method depends on end consumer. Hence many
companies instead of ultimately selling their product to their customers makes companies
product or services available to their respective customers by renting them.
P4 Report for commonwealth local government ministers meeting on key and recommendations
for action
Constructing a circular economy is highly essential for commonwealth regions as it
provides the commonwealth ministries various advantages such as reduce dependence on foreign
imports sue to lower need for production substances, lower emission of greenhouse gas,
opportunities for development to local citizens which will lead to better health of citizens from
every economic background. Various major recommendation in relation to commonwealth local
government ministers to achieve a circular economy is provided below:
Evaluation of are specific context: In order to construct a circular economy, evaluation
of various factors which are different in various regions and their position in specific area
is necessary. This process involves identification of various aspects which play a
significance role in development of circular economy such as industrial development of
that locality as locations with high resource needs require different kind of assistance in
comparison to more suburban areas. Similarly accessibility of the locality to resource
used in daily tasks of production and transportation is an important element in the
development of circular economy (Brown, 2019). The local commonwealth government

ministers need to recognise and analyse such elements to identify the transformation into
a circular economy for their particular locality involves. Government of London was
successful in building circular economy by evaluating area specific factors and taking
each factors into considerations.
Usage of smart government tenders: This practice to attain circular economy involves
government bodies of that locality to consider construction of circular economy in their
selection related to buying choices by the usage of environment friendly criteria for
government tenders and procedures which enhance sustainability in the entire journey of
product. The commonwealth ministers are required to manage various operation related
to government tenders and constructions of appropriate standards associated with upkeep,
recycling and environment friendly collection of substances used in production.
Assisting territorial and localized stakeholders: The government bodies need to give
local stakeholders such as members of local community targeted financial backing, easy
approach to knowledge and data along with platform with which they are able to convert
their business ideas into reality easily, swiftly and in ways which increase sustainability
(Grant and Drew, 2017).The commonwealth local ministers need to find the financial aid
needed by members of local community in order to conduct their present business or
future business plans with emphasis on sustainability and creation of circular economy.
London was able to develop a successful and profitable circular economy by involving
local stakeholders and encouraging them to increase sustainability through various
methods.
Financial aid : This process of developing CE involves various methods of financial
assistance such as subsidization, loans, reduction in tax investment from government or
other business associations . This will encourage citizens of that area to participate with
enthusiasm in construction of circular economy and increase the speed of development.
The concerned ministers need to provide such financial assistance to in order to attain
circular economy in their regions. The circular economy in London was developed by
giving appropriate financial assistance such as more than £100m financial
investments in developing business enterprise.

CONCLUSION
The above report shows the affect of non business entities to various international dealing
companies. It highlights to the matter of fact that how Circular economy helps in building up of
healthy environment in respective nation. It works on sustainability principle and ensures better
utilisation of resources of the firm to ensure their availability for future generations. It evaluates
the case study of various businesses in city i.e. London, mentioning scenarios of conduction of
business activities with Circular Economy. It bring in light respective steps taken by government
and companies to support development of Circular Economy in the city of London.