Exploring the Social Dimension of Business Models for Circularity

Abstract

This article explores the implications of differing cognitive models for developing business models for circularity. We argue that the circular economy might enable a sustainable development approach depending on the how the managerial practices are framed by cognitive models of sustainable business and systems thinking. Differing approaches could enable reflexive or radical reflexive management practice and an orientation imbued by concern for others. Cognitive models are associated with vastly different assumptions regarding the extent of separation or embeddedness between social and material worlds. Radical-reflexive approaches and a concern for others are more likely associated with new business models for circularity, while a reflective and separatist approach combined is more likely associated with traditional efficiency-based and functionalist models for circularity. We suggest that exposure to a functionalist approach may set the foundations for future adoption of a more reflexive worldview.