Why It's Important to Learn About the Circular Economy in Business School

Sponsored by Worcester Polytechnic Institute

Discussions and debates surrounding sustainability are a big topic in the world right now – especially with younger generations.

Last month, Swedish teenager and climate change activist Greta Thunberg delivered a speech at the UN Climate Change Summit, condemning world leaders for their failed attempts at taking action against the climate crisis.

At an education level it’s important to consider how higher education institutions implement a curriculum that teaches aspiring businesspeople about the importance of sustainability within business. For instance, the circular economy is gaining momentum and attention within every industry and sector. 

By eliminating the traditional linear economy, the circular economy ultimately works to limit waste and maximize resources by implementing a closed-loop production process that’s both restorative and regenerative. But why is this important for business and business education?

We spoke with Professor Joseph Sarkis at Worcester Polytechnic Institute (WPI) to find out more.

“There are many possible ideas for developing new industries and business models in this environment,” said Sarkis.

With huge opportunities for business students to increase their awareness of sustainability within a business setting and become forward thinkers in what is a very critical time for the environment, it’s becoming more important than ever that business schools continue to adapt and refresh their curricula.

In fact, the circular economy is a focal point of Professor Sarkis’ research as well as the MS in Supply Chain Management and MS in Operation Analytics Management at Worcester Polytechnic Institute. In his research, Professor Sarkis stressed the importance of studying the circular economy:

“Circular economy practices have been very important for industry. Some of these practices are required by regulatory policy; some by community and customer pressures. 

“It can also be important as one of the only ways for some industries to do business in the future as resource scarcity becomes a serious problem. There are also competitive pressures – where others can benefit greatly and become more competitive if businesses fail to keep up with some of these latest practices.”

MS in Supply Chain Management and MS in Operation Analytics Management students are able to learn about the various circular economy practices from a variety of perspectives, including general management, marketing, and operations. This is in addition to developing an in-depth understanding of more traditional business elements such as finance, marketing, managing, and operations.

“It’s imperative that we do this because it is a very important topic not only theoretically, but practically,” said Sarkis.

“There are many new cases where brand-name companies have made the circular economy part of their operations and strategies,” he explained.