Embracing circular economy: Sustainability leadership practices for organization transformation

• In Event: Collaborative Governance for a Clean, Smart, and Resilient Society: Insights into Policy and Practice

Abstract

This paper is the outcome of an international research that focuses on leadership and policy adoption in circular economy, a sustainability strategy whose goal is to reduce the use of natural resources and allow materials, products, and resources to remain in use for the longest time possible. However, most circular economy research has focused on operational and technological solutions to meet sustainability goals, unintentionally overlooking the role of leadership. Less is known about how the circular economy transformation becomes a workable system in organizations through the day-to-day management. This study addresses the research gap on sustainability leadership practices and gives voice to leaders navigating complex circular economy challenges within organizations. Based on 42 in-depth interviews of global leaders engaged in circular economy practices, we conceptualize a unique set of sustainability leadership qualities including appreciative intelligence. It refers to the ability to recognize the positive potential in a given situation and to act intentionally to transform that potential into results. 

Senior leadership across all continents were sampled for the interview. They were asked to think of significant challenges they had faced in creating sustainable circular economy practices, whether they were able to overcome them, and if they did, the processes and mental models involved. Interviews were recorded and transcribed for subsequent data analysis. We also noticed that these leaders were conscious of the role of policymaking related to science & technology, innovation, and economic growth. True to the theme of the APPAM conference, they were keen to share their energy and climate policy focused knowledge management lessons for the larger goal of creating a sustainable circular economy. 

The results of this study show that appreciative intelligence of sustainability leaders operate at three levels of transformation: individual, organizational, and societal. First, at the individual level, leaders focus on opportunities, question existing practices, enact sustainability as a daily practice and verify evidence for sustainability transformation through a variety of measures. Second, at the organizational level, leaders build an awareness of sustainability transformation opportunities through celebrating successes (small and large), engage in stakeholder collaboration to address systemic change, develop a common mindset among the members of the organization to see future possibilities and utilize storytelling to motivate others about sustainability transformation. Third, at the societal level, leaders focus on appreciating what already exists in educating others about sustainability transformation opportunities, imagine what is possible through strategic thinking, promote compassion in developing social, environmental and economic measures of success, and engage in creating communities of practice for empowering sustainability transformation.  

The findings on sustainability leaders’ appreciative intelligence elaborate on the microprocesses in sustainability transformation and bring forth the contextual and improvisational responses sustainability leaders have when operating within organizational realities in circular economy transformations that are rich with complexity and interdependency. The study adds to our knowledge of innovation in circular economy by depicting leadership as a catalyst for sustainability transformation. Our research provides actionable knowledge for leadership competencies and policy insights needed in the transition in business and public organizations towards circular economy practices.

Author

• Tojo Thatchenkery, George Mason University
  Presenting Author