The Adoption of Circular Economy Paradigms in FMCG Companies: An Exploratory Study
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School of Business |
Bachelor's thesis
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Authors
Date
2021
Department
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Mcode
Degree programme
(Mikkeli) Bachelor’s Program in International Business
Language
en
Pages
61+7
Series
Abstract
The main objectives of this study were to explore how CE philosophies can help FMCG companies to achieve a sustainable development, detecting possible challenges and providing recommendations for FMCG companies to successfully integrating CE practices into their business models. Based on the data extracted from the sustainability report of 21 selected FMCG companies, the thesis has analyzed their CE practices and explored the type of values FMCG companies desire the most. From such patterns, the gap between CE philosophies and their application has been identified and based on such gaps, possible challenges have been discovered. Summarizing all the perceived factors, a framework for future research has been constructed, which lays the foundation for further exploration of the impacts of those factors and promotes the extension of CE knowledge. Finally, some implications for FMCG companies to capture CE benefits are suggested. In general, most companies promote sustainable packaging and sourcing, conduct renewable energies and waste management in developed countries, but only pilot product design, EoL management and circular business model. Regarding such patterns, the gap between CE theories and current CE adoptions are identified as the lack of circular perspectives and restricted collaborations. Moreover, the confines in companies’ resources and mindset, along with other external barriers, are exacerbating these gaps. Therefore, FMCG companies are suggested to extend their CE knowledge, enhance their technology capabilities, invest in infrastructure for CE practices and adopt a circular orientation. Besides, they are encouraged to engage other stakeholders in CE practices, actively seek for collaborations, and adapt their strategies for each market to gain the most benefits from a successful transition toward CE.Description
Thesis advisor
Grinsted, SusanKeywords
Circular Economy, FMCG industry, Sustainable development, Circular Economy business models