InThinking Business Management BMT 8 - Circular Business Models

Circular business models (CBM)

These approaches or strategies focus on the long-term environmental consequences and sustainability matters related to business activities, aimed at eliminating waste and promoting the continual use of resources through reuse, repair, and recycling.

Circular supply models

A type of circular business model that focuses on replacing virgin natural resources with renewable, recyclable, and/or biodegradable resource inputs.

Consumerism

A social and economic principle that encourages the continual purchase of goods and services, often leading to overconsumption.

Disposable society

A culture where goods are used once or briefly before being discarded, contributing to excessive waste and environmental damage.

Fast fashion

A business model that mass-produces low-cost clothing to imitate changing trends quickly, often causing environmental degradation and excessive waste.

Linear business model

A traditional business approach where products are made, used, and discarded, focusing mainly on short-term profit rather than sustainability. This approach focuses on costs, revenues, and profits related to business activities, often with a short-term outlook.

Planned obsolescence

The business practice of designing products with limited lifespans to encourage repeat purchases, increasing waste and reducing product sustainability.

Product life extension models

These are a type of CBM that focus on businesses extending the product life cycle of their goods rather than encouraging consumers to replace and upgrade their products.

Product service system models

Refers to a type of CBM that focus on businesses providing a service instead of tangible products, whilst consumers buy a service instead of buying a physical product.

Recycling

The process of converting waste into reusable material, helping society to conserve natural resources and reduce environmental impacts of business activities.

Resource recovery models

These are a type of CBM that focus on recycling waste (such as glass, plastics, and aluminium cans) into reusable raw materials, thereby diverting waste from final disposal.

Sharing models

These are a type of CBM that focus on allowing customers to share products that have a low ownership and/or usage rate, instead of them having to purchase and own such products.

Sustainability

The concept of meeting present needs without compromising the ability of future generations to meet theirs, balancing economic, social, and environmental goals.