Circular Economy and Sustainability

Stowell, Alison and Corvellec, Herve (2025) Circular Economy and Sustainability. In: Elgar Encyclopaedia of Business Ethics :. Edward Elgar Publishing Ltd., Cheltenham. (In Press)

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Abstract

The circular economy aims to reduce resource use and waste, extending product life, and promote sustainability but faces critical theoretical and practical challenges. Originating from Stahel and Reday’s 1976 vision, it has gained global traction in business and policy spheres, yet critics argue that circular is not synonymous with sustainability. The law of thermodynamics, entropy prevent perfect circularity, and waste remains complex and challenging to manage. Economic, environmental and social impacts of circular business models and a circular transition are systematically ignored and therefore uncertain. Without radical change, circular solutions risk co-existing alongside linear practices, increasing rather than reducing environmental harm. Current circular economy activities can overlook social sustainability pillar neglecting labour rights, equity. Circularity alone is neither necessary nor sufficient for sustainability. For circular economy to achieve real impact, it must be approached with modesty and embrace ethical governance, inclusivity, and justice, addressing who benefits from circular practices and ensuring they contribute meaningfully to a sustainable and just future. Key words: Circular economy, circular business models, critique, environment, social, sustainability.