Circular economy in corporate sustainability strategies: A review of corporate sustainability reports in the fast‐moving consumer goods sector

Stewart, Raphaëlle Marie Marianne; Niero, Monia

doi:10.1002/bse.2048

Cited by 230 publications

(229 citation statements)

References 52 publications

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“…The concept of CE is viewed as a strategy to achieve corporate sustainability (Ghisellini et al, 2016;Murray et al, 2017). Firms have begun to integrate CE into their corporate sustainability agenda (Stewart & Niero, 2018). However, most firms are still questioning how they can adjust their existing business models or create new business models for CE (Urbinati, Chiaroni, & Chiesa, 2017).…”

Section: Dynamic Capabilities In Corporate Sustainability and Cementioning

confidence: 99%

Microfoundations of dynamic capabilities: Insights from circular economy business cases

2020

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Circular economy is a key strategy to achieve corporate sustainability. However, so far, most firms are unable to translate the concept of circular economy into their corporate strategies, business models, and operations. Some scholars have argued that firms need to develop new (and dynamic) capabilities for circular economy implementation. Yet there is a little discussion on how firms can develop such capabilities. Notably, there is a paucity of research on specific skills, processes, and organizational activities (microfoundations of dynamic capabilities) that may facilitate circular economy implementation. To address this knowledge gap, using a multiple‐case studies approach, we explore microfoundations of dynamic capabilities in successful circular economy business cases. Our findings indicate that dynamic capabilities positively contribute to circular economy implementation. Our case studies show that case firms identified circular economy opportunities by using four microfoundations of sensing capability. Further, case firms acted on the identified opportunities by using simultaneously three microfoundations of seizing capability and four microfoundations of reconfiguring capability. This paper contributes to the literature on the relations between dynamic capabilities and corporate sustainability by providing insights on how sensing, seizing, and reconfiguring dynamic capabilities act in successful operationalization of circular economy strategies.

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Section: Dynamic Capabilities In Corporate Sustainability and Cementioning

confidence: 99%

Microfoundations of dynamic capabilities: Insights from circular economy business cases

2020

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“…Research has focused on analyzing the inclusion of environmental data in annual accounts by using social and environmental standards (Mathews, 2008), disclosure practices and accountability in green sectors (Burritt and Schaltegger, 2010;Llena et al, 2007;Walton, 2000) and cleaner production (Marco-Fondevila et al, 2018). In this context, the reporting of environmental information and its quality are interesting topics to the CE research community, although very few authors have addressed these issues (Stewart and Niero, 2018). Yearly, an increasing number of large companies release corporate social responsibility (CSR) reports that are provided to their external stakeholders.…”

Section: Reporting and Accountability In A Circular Modelmentioning

confidence: 99%

“…From another perspective, the influence of stakeholders in firms' adoption of the CE has been studied (Lieder and Rashid, 2016;Ranta et al, 2018;Stewart and Niero, 2018). However, to the best of our knowledge, the broad topic of stakeholder pressure and its relation with the environmental capabilities (capabilities applied to the environmental activities of firms) Circular economy in businesses that firms have to manage to introduce the CE in their processes, particularly if a circular business model is adopted, remains open.…”

Section: Introductionmentioning

confidence: 99%

Dynamic capabilities and environmental accounting for the circular economy in businesses

Scarpellini¹,

Marín-Vinuesa²,

Aranda‐Usón³

et al. 2020

SAMPJ

112

101

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Purpose This paper aims to define and measure the environmental capabilities that are applied when the circular economy (CE) is introduced in businesses. Founded on the dynamic capabilities theoretical approach, the study analyzes different environmental competences that firms apply during this process. Environmental management systems, corporate social responsibility, reporting and accountability and other environmental accounting practices are studied in the same analytical framework used to study the environmental capabilities that influence the circular scope (CS) of firms. This study contributes to bridging the gap between academic research focused on environmental accounting and that investigating the introduction of the CE in businesses. Design/methodology/approach The results were obtained by using partial least squares structural equation modeling to analyze the relationship between environmental capabilities for the CE and the CS achieved by a sample of Spanish firms with more than 50 employees that expressed interest in the CE, eco-design, eco-innovation and other environmental issues. Findings Based on an analysis using the dynamic capabilities theoretical approach, the results suggest a positive relationship between the CS of firms, their environmental accounting practices and their level of corporate social responsibility (CSR) and accountability. Stakeholders’ pressure – which has a mediating effect on the CS of firms – is also analyzed, adding new insights to recent studies of this topic at the micro-level. The authors also explore whether the CS of businesses, which is related to the degree of their development of capabilities, influences environmental and financial performance. Practical implications The new insights obtained in this study can help overcome the limitations of conventional accounting approaches and incorporates a much broader scale of environmental information that can be applied to CE practices. These results also offer insights to practitioners regarding the internal measurement processes related to the CE and regarding CSR in particular for small and medium enterprises, because these metrics can be partially applied depending on the practices introduced in each firm. For policymakers, a better understanding of the CE’s introduction into businesses will contribute to the design of policies that can enhance its deployment, for example, by providing tools that set up regional priorities depending on the CE-related practices adopted by the firms located in the territory. Social implications A CE involves the transformation of a linear economic model into a circular one to reduce dependence on raw materials and energy and to reduce the environmental impact of production and consumption. Understanding how to manage the specific competences that integrate capabilities applied to the CE will allow firms to improve their social and environmental reporting. In addition, other social implications of this study relate to improving relationships with consumers and stakeholders and to the practice of social corporate sustainability. Originality/value This study goes beyond previous research on the CE to extend the authors’ knowledge about its adoption at the micro-level by taking a transversal approach, as its subject spans the fields of environmental accounting and the CE while addressing both in a framework of analysis. The analysis of the accounting concerns of the CE in businesses and the study of concerns related to endogenous environmental competences are quite original under the theoretical framework of dynamic capabilities, and this study is a first step in an incipient line of inquiry.

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“…This paper acknowledges this definition, which enables the issue of the circular economy and its business models to be positioned as a specific field, with solutions aimed at “closing the loop of resources,” inside the broader sustainability agenda. In this field, much remains to be studied regarding how firms can address the circularity principles, including the focus of our research—which innovative business models can be implemented (Stewart & Niero, ) and which implementation and growth barriers firms need to address (Hazen, Mollenkopf, & Wang, ).…”

Section: Business Models Ecosystems and Innovation In The Circular mentioning

confidence: 99%

Circular business models for sustainable development: A “waste is food” restorative ecosystem

2018

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Our aim is to provide a better understanding of a business model based on circular principles. In particular, we focus on two issues that support the development of a circular business model: (a) the focal actor as orchestrator of the circular network and (b) the circular ecosystem encompassing suppliers, customers, research centers, and public authorities, in which each actor/stakeholder plays a specific role, based on effective interorganizational relationships. The research method applied is an in-depth nested single case study of a circular project. Our results highlight an exemplar case of an ecosystemic business model in agriculture, involving different types of innovation and strong collaboration among network members, orchestrated by a focal firm. The abductive approach used led to the formulation of some research propositions and to the identification of some adoption factors and barriers to growth in circular business models.

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Circular economy in corporate sustainability strategies: A review of corporate sustainability reports in the fast‐moving consumer goods sector

Cited by 230 publications

References 52 publications

Microfoundations of dynamic capabilities: Insights from circular economy business cases

Microfoundations of dynamic capabilities: Insights from circular economy business cases

Dynamic capabilities and environmental accounting for the circular economy in businesses

Circular business models for sustainable development: A “waste is food” restorative ecosystem

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