Circular Economy and Sustainability
The significance of circular economy business models has been increasingly recognized by the United Nations and the European Union in promoting sustainability. Compared to traditional business models, circular business models are regarded as crucial for warranting sustainable business and generating sustainable revenue. It is necessary to emphasize that circular business models are not conventional profit-oriented economic models for maximizing a company’s revenue. Instead, circular business models are value-driven models and characterized by a set of institutional principles for sustainability. As a result, circular business models can be best developed and fully analyzed only from an institutional perspective. If circular business models can truly help enterprises achieve the goal of sustainable business, it is because circular business models have the capacity to explain institutional change. As institutional change takes the form of a change in the value structure of the underlying institution, circular business models clearly reflect the ability of the business community to appreciate and adapt to a progressive change towards a circular economy that is both overdue and necessary. Circular business models are not only a sensible framework designed to implement the circular economy, but are also a feasible guideline to help the business community achieve the goal of sustainability. A critical factor in promoting circular business models is a growing sense of awareness within the business community that there is an urgent need to modify the patterns of “business as usual” in order to achieve the higher goal of sustainability.