The Circular Economys Social Dimensions: Implications for Global Strategic Management Teaching and Practices

Abstract

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This chapter highlights the role of multinational corporations (MNCs) in promoting social sustainability globally, and presents tools for MNC decision-making to incorporate the circular economy (CE) in MNCs’ strategies and strategic practices. The latter fills the knowledge void and allows the addressing of the scarcity of teaching materials on strategic management informed by the CE’s social dimensions, i.e., labor practices and decent work, human rights, society, and product responsibility. Moreover, it adds value to existing strategic management practices by providing a transformation roadmap that can enable managers to think in the contexts of social sustainability in home and host countries. By exploring the CE’s implications for global strategic management, the chapter supports the implementation of Sustainable Development Goals (SDGs) 1 (No Poverty), 3 (Good Health and Well-being), 4 (Quality Education), 8 (Decent Work and Economic Growth), 10 (Reduced Inequalities), 11 (Sustainable Cities and Communities), 12 (Responsible Consumption and Production), and 16 (Peace, Justice, and Strong Institutions). The chapter offers knowledge needed for teaching social dimensions of the CE in strategic management and provides insights centered around three themes: (1) the CE philosophy and management practices for integrating the CE at the MNC level to create a new quality of socially sustainable strategic behavior, (2) aligning MNCs’ strategy with SDGs 1, 3, 4, 8, 10, 12, and 16, and (3) how MNCs can foster social sustainability through strategic innovation in global markets.