The typology of 60R circular economy principles and strategic orientation of their application in business

Abstract

The circular economy is one of the recent concepts promoted as the pathway for further green and sustainable development, yet entrepreneurs and managers lack the knowledge on implementing circular economy principles. Assuming the multi-dimensional and systemic character of the circular economy, this article provides a road map of 60R circular economy principles that can be adopted in any company to create a positive economic, environmental, and social impact. This set of circular economy principles allows the existing performance of companies within environmental regeneration to be assessed, and identifies possible improvements to business circularity. Identifying additional “R" principles could lead to increased synergy or complementarity between them. These 60R circular economy principles are classified in four groups - reduce, reuse, recycle and reverse logistics. The proposed list of CE principles provides a useful framework for business managers to structure potential tasks and develop strategies for CE implementation and serve as a roadmap for researchers to extend existing research on CE principles. This study is based on the systematic literature review critically examining 148 articles and providing a comprehensive and profound overview of circular economy principles to be considered by business practitioners and entrepreneurs. Previously, CE principles are researched in environmental sciences, engineering, and energy. This article contributes to the existing knowledge gap and builds new knowledge on the discipline of business management, as publications in these fields are scarce. The study highlights the significance of reverse logistics and calls for extensive research on how companies can incorporate material or product returns into their business models or strategies, which is a critical research question for future studies.