MUHAMMA D BUKHARI

CIRCULATION ECONOMICS A Turn Towards Sustainability

Conclusion :
Process and change are important halmarks in the organic world view, it is of great importance that economic systems are flexible. Circulation economic represents a dynamic approach to the problems, and the practical solution do not remain fixed once and for all.

Is used as an integrative term, encompassing most of the relevant aspects of these new perspective in economics. It is necessary to expand the focus in mainstream economics on four dimensions

Implementing Circular Value Chains

Integrating Economic, Cultural and Environmental Values

Incorporating a Communicative Arena for Cooperative Interaction

Circulation economics changes the focus from the firms ability to maximise the owners short-term profits, to take care of the individual, societal, and environmental interest in the long run. This implies a transition from a shareholder to a stakeholder perspective (Freeman, 1984; Freeman and
McVea, 2001).

Introducing an Organic World View

One of the vital roles of bussines is to contribute to an efficient use of resources that meets human needs while being in accordance with sustainable development A general goals is to introduce systems that lead to increased production combined with decreased extraction of raw material and amounts of waste. To reduce the negative environmental side-effects from both the input and the output side of the economy. It is necessary to implement a circular value chain. In this way it is possible to connect the goals for reprocessing of waste with increased use of recycled materials in the production of new commodities. The strategic solutions in circulation economics are based on an operational defenition of the complete process of procuring raw materials, production, disposal and reprocessing as a unified whole. Example in the economy is heat from industry could be used as energy in greenhouse production. Dust from heavy industry could be used as input in production of reinforced concrete. Composite waste from restaurants and households makes an important contribution to the cultivating of new soil. In circulation economics, redistribution has an essential function, conecting consumption and production (the end in the linear value chain)

Interaction between economy and nature Circulation economic is focusing on the interplay between economic and natural processes and values. The acknowledgement that ecosystems are influenced by economic input (eg. mining, deforesting, agriculture and fishery) and economic output (eg. pollution from production, distribution, consumption and disposal) is essential. The construction and destruction process in ecology are much slower than in economics. The accelerating in the economy results in increasing use of raw material and growing quantities of waste. The process in nature function does not make compromise. In nature, organic matter is renewed through biological processed based on solar energy. Interaction between economy and culture We have argued that circulation economic is based on an assumption that all kinds of economic action influence different eco-systems. Bussines and society are interwoven rather than distinct entities (Wood,1991) Corporate social behaviour as a bussiness organizations configuration of principles of social responsibility, processes of social responsiveness, and policies, programs and observable outcomes as they are relate to the firms societal relationship. (Watrick and Cochran, 1985).

To provide an arena for communicative interaction, we proposed an institutionalised system of links between the firm and stakeholders which call this system a communicative arena. The main purpose of establishing the communicative arena is two-fold. The first is to develop a structure for cooperative interaction within the economy. The second is to develop a structure for harmonising values between the different value spheres; economy, nature, and culture. To make sure that all levels of corporate social responsibility are taken into consideration, the structure of the associative networks is of great importance. The communicative arena represents a network suited to establish the spirit of association between the participants, necessary for social responsibilty and sustainable development.

The Philosophy of organism (Whiteheads,1967) can be summarised as a response to the mechanistic worldview, dominating the Western culture during the past centuries. Whithead argued that it was of great importance to revitalize the experience of connectedness between economy, life and nature, and he offered a view of the world as dynamically alive, and constituted by entities that have intrinsic value. Despite several differences between nature and economy, we can find the same functions in circulation economics. Different actors in the market (functions), producers, distributors, consumers and redistributors must co-operate (structure) to find the most resourceefficient solutions. Actors, who operate in the same niches of the market, compete for limited resources. Competition and cooperation are different principles not excluding, but supplementing each other. All kinds of economic activity are related to the dualism of nature and culture. Nature and culture represent necessary conditions for bussines activity. As a general rule, we can say that diversity in both nature and culture are necessary conditions for sustainable development.