The Circular Economy and Corporate Sustainability in Emerging

Markets.

Chapter 1: Introduction
The linear economy model is being transformed into a circular model to positively impact the
environment, society, business and sustainable development goals (Virmani, Saxena & Raut,
2022). The circular economy (CE) concept is trending and it emerged as a key concept to reduce,
reuse, recycle and recover wastages, thereby achieving social, economic and environmental gains
and achieving sustainability (Kirchherr, Reike & Hekkert, 2017). In the linear economy model,
products are manufactured, sold, used and thrown to landfill or partially recycled. On the
contrary, nothing goes to waste in the CE model. The products used are broken down, processed
and reused to maximum permissible limits. It helps in reducing input resources, wastages and
environmental degradation without effecting the growth opportunities (Genovese et al., 2017).
Schilkowsky, Shukla & Choudhary (2020) stated that CE is met when the sum of all waste
generated from all sources becomes equal to the summation of all waste used as input. According
to Kircherr et al. (2017, p.224) CE can be defined as “an economic system that replaces the ‘end-
of-life’ concept with reducing, alternatively reusing, recycling and recovering materials in
production/distribution and consumption processes”. It operates at the micro level (products,
companies, consumers), meso level (eco-industrial parks) and macro level (city, region, nation
and beyond), with the aim to accomplish sustainable development, aiming at creating
environmental quality, economic prosperity and social equity, to the benefit of current and future
generations.
An example of a leading advocate for the circular economy is The Ellen MacArthur Foundation.
This is a non-profit organisation, established in 2010 and working to inspire and mobilize
stakeholders across different sectors to transition towards a more sustainable and regenerative
economic model. The foundation is dedicated to develop and promote the circular economy as a
solution to some of the environmental and economic challenges facing the world. It is world’s
leading circular economy network (The world’s leading circular economy network, n.d.).

1.1 Problem statement

It is argued that the current linear economic model, characterized by wasteful resource use, is the
root cause of many of today’s grand environmental challenges. These include natural habitat loss,
resource scarcity, waste from unsustainable production and consumption patterns, plastic in
oceans and health concerns due to increasing amounts of waste (Ripple et al., 2017). These are
problems spreading throughout the world. The linear economy (LE) can be considered as a
‘societal grand challenge’ as global issues affecting large populations across multiple countries
and regions (Brammer, Branicki, Linnenluecke & Smith, 2019, p.526).

Existing circular economy conceptualisations are based on developed markets (Korsunova,

Halme, Kourula, Levänen & Lima-Toivanen, 2022).

Probleem, wat mist in de literatuur à bv de lineaire relatie tussen CE en CS en welke factoren

invloed hebben op deze relatie. (bv wat nog meer CS beïnvloed) waarom dit interessant is. Wat
CS voor problemen heeft. Wat mist er nog

1.2 Objectives & Research Question

Doel van het thesis en hoofdvraag

1.3 Relevance
Research should elaborate on the relationship between Circular Economy and Corporate
Sustainability. Dzhengiz et al. (2023) suggest future research on exploring the limits and
boundary conditions of circularity within businesses, suggesting evaluating the CE-CS
relationship through a moderation and providing clarity on direction.

Relevantie van dit onderzoek waarom is deze hoofdvraag wetenschappenlijk en praktisch relevant. Link
dit aan 1.1 problem statement.

1.4 Outline
In the remainder sections of the thesis, the structure will be as follows: Chapter Two will present
a theoretical framework wherein an examination of existing literature on fundamental concepts
and their interrelationships will be undertaken. This will lead to the formulation of several
hypotheses, which will then be illustrated through a conceptual model to elucidate their
interconnections. Following this, Chapter Three will delve into the research methodology,
consisting of a justification of the data analysis and its corresponding limitations and ethics.
Chapter Four will be dedicated to the presentation of the empirical findings. Chapter Five and Six
will cover a comprehensive discussion and conclusion, in which the research’s limitations will be
addressed. The final chapter will propose avenues for future research.

World bank Dataset: dataset on emerging markets

Global Reporting initiative (GRI) reports: circular economy (sustainability and corporate social
responsibility initiatives)

References
Brammer, S., Branicki, L., Linnenluecke, M. & Smith, T. (2019). Grand challenges in
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Dzhengiz, T., Miller, E. M., Ovaska, J., & Patala, S. (2023). Unpacking the Circular Economy: A
Problematizing review. International Journal of Management Reviews, 25(2), 270-296.
https://doi.org/10.1111/ijmr.12329

Genovese, A., Acquaye, A., Figueroa, A., & Koh, S. L. (2017). Sustainable supply chain
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The world’s Leading circular economy network. (n.d.).

https://www.ellenmacarthurfoundation.org/network/overview

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