Circular Economy and Strategic Risk

Abstract

Governments and international organizations are focusing on resource consumption, both on the way resources are produced or extracted, and on the disposal of waste produced at the end of product lifecycle. At the same time, companies are called upon to rethink their business strategies and to adapt their management models, which need to be inspired by sustainable development. In this sense, a systemic and integrated vision of the economic, social and environmental dimensions is essential to guarantee an effective corporate governance sustainability strategy. Furthermore, the change of business model towards the Circular Economy implies new challenges as managing the strategic risk in an integrated way. The aim of this article is to provide theoretical considerations about the transition from linear to circular economic model, in relation to the profound change of the company’s core values and strategic risk.