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9Значение и суть циркулярной экономики
Аллахвердиев Эльнур
канд. экон. наук, директор, Бакинский Колледж Бизнеса и Кооперации, aelnur786@gmail.com
Как объясняется в этой статье, модель экономики замкнутого цикла является одним из основных сторонников управления бизнесом. Концепция экономики замкнутого цикла - это концепция, возникшая из различных концепций, связанных с улучшением экологических показателей и пониманием устойчивости, а описанные выше бизнес-модели замкнутого цикла включают исследования, которые могут конкретно улучшить экологические показатели предприятия. Модель экономики замкнутого цикла - это модель, которая может способствовать выполнению основных функций предприятия, таких как планирование, организация, выполнение и контроль в центре внимания управления бизнесом. Точно так же динамика перехода к экономике замкнутого цикла, упомянутая выше, и приведенные в качестве примеров бизнес-модели замкнутого цикла позволяют осуществлять все виды деятельности бизнеса, от маркетинга до закупок, от производства до финансового управления, от бухгалтерского учета до исследований и разработок и инновационных исследований. подход к управлению бизнесом. Ключевые слова: экономика, циркуляр, смысл, сущность
1. Introduction
Today, sensitivity towards environmental problems is increasing day by day. So much so that the expectations and therefore the pressures of consumers, governments and other stakeholders to increase the environmental performance of businesses and to implement green business management principles are at a very noticeable level (Jakhar et al., 2018). In the face of these expectations and pressures, although more environmentally friendly and sustainable options have been started to be evaluated in production and consumption processes, there is always a need to develop more efficient and efficient economic models in terms of the environment, considering the current resources and their consumption rate (Onder, 2018).
The aim of this study is to discuss the concept of circular economy and to examine circular business models by considering this economic model with the focus of green business management. In the first chapter, which follows the introductory part of the study, general information and definitions about the concept of circular economy are made and its differences from linear economy are revealed. In the second part, the basic dynamics of the transition to the circular economy are examined and application examples from the textile, fashion, furniture and tourism sectors are given. In the third part of the study, various cyclical business models are explained with the focus of green business management. In the conclusion part of the study, evaluations were made about the transition to the circular economy and the role of the business world in this transition, and suggestions were shared for both the reshaping of the business processes of the existing businesses according to the circular economy model and the businesses that the entrepreneurs will establish within the scope of these current business models.
2. Circular economy
Although the circular economy is a concept that has gained importance in the literature in recent years, it is not a concept that has emerged out of nowhere and is a proposition that has emerged as a result of various historically developed thought systems for environmental sensitivity and more efficient consumption of resources. Lacy and Rutqvist (2015) summarized this historical development as follows: With the idea of resource efficiency put forward at the end of the 1990s, it was suggested that the welfare of societies could increase without causing environmental destruction. In the 2000s, with the "cradle to cradle" perspective, focus was placed on eco-efficiency instead of eco-efficiency, and a system change in current economic models was proposed. At the end of the 2000s and the beginning of the 2010s, perspectives have been developed in which innovative business models in which economic growth can be decoupled from resource consumption are proposed and that the output of one business unit should be considered as the input of another business unit. In the continuation of this historical
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development, the concept of circular economy has emerged.
When the prominent definitions of the concept of circular economy by different researchers and institutions are evaluated, for example Jurgilevich et al. According to the definition made by (2016), the circular economy is the reuse, repair, refurbishment and recovery of existing materials and products, and the evaluation of materials that were previously seen as waste as a resource. According to a broader definition by the Organization for Economic Cooperation and Development (OECD, 2020), the circular economy aims to:
1. To increase the value of materials and products in circulation in the economy,
2. reduce the consumption of raw materials, harmful substances and materials that generate significant waste, such as plastics, food, electrical and electronic equipment,
3. prevent waste generation
4. reducing harmful components in waste and products.
According to a definition that emphasizes making the
material flow cyclical, circular economy is a strategy that aims to reduce the entry of new unprocessed materials into the cycle and the exit of wastes from the cycle by closing the economic and ecological cycles in the material flow (Haas et al., 2015). Kirchherr et al. (2017), on the other hand, examined different definitions of circular economy in the literature and discussed this new concept for three different levels of the economy, and at the micro level (products, businesses, consumers), mezzo level (eco-industrial parks) and macro level (city, region, country and beyond). ) is a viable economic system based on sustainable development, aiming at the reduction, reuse, recycling and recovery of materials in production, distribution and consumption processes, as well as the environmental quality, economic welfare and social equality of present and future generations.
3. Transition to circular economy: dynamics behind it and application examples from different sectors
3.1. The Dynamics behind the Transition to the Circular Economy
Before explaining the dynamics behind the transition to the circular economy, it is useful to examine the impact of circular business models on the linear economy. For this purpose, there is a linear production and consumption flow from raw material supply to waste generation, and cyclical business models that can be applied for various steps of this flow are shown. For example, according to the linear flow, the life of the product ends after the use step, but with cyclical business models such as sharing, repair, reuse, remanufacturing and recycling, instead of going to the next step in the flow, the previous steps are returned to ensure that the product stays in the economy longer.
The basic dynamics of the business world's transition from linear economy to circular economy can be evaluated as environmental sustainability, competitiveness, investment opportunities, digitalization and assurance in resource supply (Rizos et al., 2018). These basic dynamics accelerate the transition to the circular economy, encourage the business world, and include elements that will ensure the management of long-term risks. In addition, the dynamics grouped under these five titles also include significant pressure and guidance for businesses to carry out their activities in a circular model focus by changing the way of doing business based on linear economy.
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Figure 1. The Impact of Circular Business Models on the Linear Economy Source: OECD, 2019
Another dynamic behind the transition of economies to a cyclical order is digitalization. Technological developments significantly change both the way businesses do business and the consumption behaviors of consumers. With digitalization, businesses that can provide more control over their production processes can identify areas that will reduce the use of resources in these processes.
Securing the supply of resources is seen as another important dynamic in the transition to the circular economy. Due to the risks in the supply of raw materials that are critical to manufacturing processes and especially imported from other countries, circular economy strategies of using such raw materials through recycling and recovery instead of obtaining them from the primary source are essential for securing resource supply is important for the business world (Rizos et al., 2018).
On the other hand, the circular economy model includes many different circularity strategies to reduce the consumption of natural resources and materials and reduce waste generation. In order for these circularity strategies to be implemented, businesses need innovation in the technology, product design and income model they use, and it is thought that this transformation must be nourished by socio-institutional change (Potting et al., 2016).
3.2. Application Examples from Different Sectors
In this section, as an example, the opportunities for transition to the circular economy for some sectors are examined and exemplified by various cases. In this context, the textile and fashion sector, which is an important part of daily life, has been examined in order to set an example from the furniture sector and service sector, which make up living spaces both in homes and workplaces, and cyclical business opportunities for the tourism sector.
When the cyclical business models for the textile and fashion sector are examined first, it is understood that the textile and fashion sector, which has a great place in our daily life, is one of the sectors that use natural resources, water and energy intensively. The transition to circular business models has started to bring a solution to these problems in the textile industry (Kazan?oglu et al., 2020). Various cyclical business models that can be applied in the textile and fashion industry, where consumers are also increasingly conscious and shape their shopping
preferences according to the environmental and social performance of brands, can be listed as follows:
Choosing organic cotton as raw material; Returning used denim trousers, giving a discount voucher to the customer, and selling these products as second-hand products after being repaired; recycling of torn products that cannot be repaired and their use in carpet making; providing free repair kits to customers who want to repair or repair customers' torn products free of charge; operating platforms where users can exchange or share second-hand clothing; operation of stores that repair, clean and sell the clothes sent by the members and share the sales revenue with the member; the activities of tailors who make tailor-made clothes, bags and accessories only from fabrics and other textile products that cannot be sold in waste and warehouses; handbag production from waste materials such as seat belts, fire hoses and parachutes; establishment of tracking systems to increase the lifetime of workwear and production of workwear from biodegradable materials; sourcing raw materials from local suppliers; design improvements for the easy removal and recovery of accessories such as metal buttons from unusable clothes (Guldmann, 2016).
Collecting the textile products that customers do not use in the boxes placed in the stores, giving discount vouchers in return, donating the good ones from these products to charities, and sending the others for recycling (Stâl and Hervé, 2018).
Preventing the use of toxic components in yarn production processes by developing certification systems based on the circular economy model; setting standards such as not using together materials that cannot be separated from each other during the recycling phase; the ability to rent various clothes for a certain period of time with the membership system (Fischer and Pascucci, 2017).
The tourism sector, which is examined as an example from the service sector as well as the sectors for manufacturing, when considered together with sub-sectors such as travel, accommodation, food and beverage, causes current environmental problems such as the destruction of natural life, use of clean water, energy use and climate change. Sea, coastal, air, water, noise and visual pollution, unplanned construction and deforestation (Arica and Gok, 2019), fossil fuels consumed for all kinds of travel and related carbon emissions due to human density in ecologically sensitive areas, hotel and other tourism The consumption of resources related to the construction processes of the facilities and therefore the deterioration of the ecological balance, especially the needs of furniture and textile products in the accommodation and food and beverage sector and their renewal rates (Einarsson and Sorin, 2020), food waste arising from business models such as the all-inclusive system issues such as these can be cited as examples of these environmental problems. Circular business model opportunities to overcome these problems in the sector can be listed as follows:
Sale of used textile waste to appropriate institutions for recycling; sending food waste to appropriate institutions for evaluation; repair and remanufacturing of various furniture and electrical products; the shared use of some products such as bicycles and canoes by hotels (Florido et al., 2019).
Use of clean water and energy efficient equipment in hotels (eg tap heads, lamps, air-conditioning equipment); collecting and using rainwater; the use of carpets made of recycled plastic; preferring products made from recycled materials in products such as pillows and quilts; abandoning
the use of disposable plastic products (for example, straws); evaluation of local and sustainable sourcing alternatives for various food products such as seafood; using jugs instead of bottled water; preferring products with environmental certification in products such as soap and shampoo; using hotel furniture from sustainable sources in room designs; reducing energy use by using smart technologies; reducing food waste by analyzing waste food with smart systems; selecting biodegradable materials; implementation of environmental
management systems (Rodriguez-Anton and Alonso-Almeida, 2019).
Conclusion
In this study, information on the concept of circular economy and circular business models was shared and sectoral examples were also included in addition to theoretical definitions. Accordingly, in summary, the concept of circular economy, although a concept that has developed in recent years, is a current topic that has gained importance starting from the 1990s and where different concepts based on improving the environmental performance of the business world have evolved and developed. In the coming years, researchers will be able to introduce new concepts by improving and developing this concept. Although concepts evolve and change, governments, business leaders, academics, and most importantly consumers will continue to increase the expectation and pressure that the business world will improve its environmental performance. This pressure and the factors that create this pressure will have a direct impact on the competitiveness of businesses. For these reasons, businesses will need to change and improve the way they do business, regardless of their sector, scale and location. At this point, an adaptation to circular business models should be seen as an important competitive advantage opportunity for businesses.
Research in areas related to materials science such as the possibilities of using new raw materials from sustainable sources, replacing synthetic raw materials with natural and biodegradable raw materials, incorporating recycled materials with appropriate technical properties into production processes, developing composite materials that provide lightness and strength. It seems possible to reduce the environmental burdens in the manufacturing and product usage processes and to increase the useful life of the products through development and development studies. During the transition of the business world to the circular economy, cooperation between large enterprises and entrepreneurs also creates important opportunities. Veleva and Bodkin (2018) found in their study that more and larger enterprises collaborate with entrepreneurs in areas such as waste reduction and reuse of products, and that such strategic partnerships provide significant performance increases in cost, time, energy, environmental effects and resource use of large enterprises, they have demonstrated. For this reason, entrepreneurs can develop business ideas that can produce solutions to global sustainability problems such as plastic, packaging, energy use and water use of large enterprises, and thus they can both implement their business ideas with a strong stakeholder and be an active part of the solution.
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The meaning and essence of the circular economy Allahverdiyev E.
Baku Business and Cooperation College
JEL classification: B41, E22, E44, N01, N10, O33, O38_
As explained in this article, the circular economy model is one of the most basic supporters of business management. The concept of circular economy is a concept that emerged from various concepts related to the improvement of environmental performance and the understanding of sustainability, and the circular business models described above include studies that can concretely improve the environmental performance of an enterprise. The circular economy model is a model that can contribute to the fulfillment of the basic functions of the enterprise such as planning, organization, execution and control in the focus of business management. Similarly, the dynamics behind the transition to the circular economy mentioned above and the exemplified circular business models enable all activities of a business, from marketing to purchasing, from production to financial management, from accounting to R&D and innovation studies, to be handled with a business management approach.
Keywords: Economy, circular, meaning, essence
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