Investigating the Interplay between Social Performance and Organisational Factors Supporting Circular Economy Practices

Abstract

Sustainability is the prime concern for several organisations, regulatory bodies, and industrial professionals in the contemporary business environment. Therefore, a new consumption and production paradigm emerges as the circular economy (CE), which is considered an effective medium to achieve sustainability. However, the adoption or transformation of the circular economy depends on several factors including organisational factors. Therefore, the aim of this study is to explore the role of organisational factors in the adoption of CE practices for achieving social sustainability. Initially, the fifteen organisational factors and eight social sustainability performance outcomes are identified through the literature review and expert feedback. Further, the Best Worst Method (BWM) is applied for the prioritisation of these factors. Additionally, the impact of these factors is also evaluated on the social sustainability performance outcomes using the weighted aggregated sum product assessment (WASPAS) method. The findings show that “long term planning and strategy”, “top management participation” and “alignment of organisation’s vision with CE goals” facilitate CE practices’ adoption. With the implementation of these organisational factors, improvement could be seen in employee satisfaction, fair business operations, and working conditions. The findings are beneficial for managers, policymakers, and researchers to develop strategies for the adoption of CE practices to achieve social sustainability.