After reading a post titled “Important Facts About the Circular Economy” it got me thinking about the strategies that current companies are implementing. The world is rapidly changing, both environmentally and socially. In the next decade, there will be a number of changes that radically change the way we live our lives and how organizations are run. In this post, the author describes a theory known as the circular economy. This theory describes that company’s should redesign their business model and reuse as many resources they can within their supply chain. Many companies refuse to accept this theory – one reason due to the upfront cost. However, I think that companies should be looking into the future, developing long-term, sustainable strategies and visions for their organization.
There are a number of facts that support the theory of circular economy and implementing a long-term sustainable strategy. However, companies are still trying to deny them. Even if a company is set on maximizing their profits, an investment in sustainable practices will maximize profits in the long run by a higher percent than if the company continued with their current strategy. For example, by improving the office building (letting more natural light in, adding operable windows, letting employees have more control over light and temperature) employee productivity will increase, adding to the organizations bottom line. This is just one of many examples how sustainable practices can improve an organization.
The idea of circular economy is not only related to organizations within the United States; it has become a global matter. Some countries have organizations that have taken the lead on sustainable initiatives, such as those in Norway, Finland, and Denmark – who are ranked near the top for having the most sustainable corporations in the world by Global 100. I think that the time is now for companies to begin to look at the long-term strategies of their company and adjust to improve the sustainability. It is important for the corporation’s business models to be circular rather than linear.
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