Sustainable Practices And Performance Outcomes: A Study Of Circular Economy In Indian Firms

Abstract

In recent years, corporate social responsibility (CSR) has become a pressing challenge for firms, and the circular economy (CE) has emerged as an innovative business model that translates CSR into practical actions. While adopting such a strategic model has the potential to enhance firm performance, existing evidence remains mixed and inconclusive. This study serves a dual purpose: first, it examines the impact of three CE practices - waste treatment, reduction, and recycling - on brand reputation and financial performance; second, it explores the mediating role of brand reputation in the relationship between CE practices and financial outcomes. The findings underscore the significance of the 3Rs and brand reputation in improving firm performance. This research offers valuable insights into how CE practices, as sustainable strategic and managerial tools, influence both marketing and financial performance. Additionally, it highlights the importance of incorporating CE into the corporate sustainability agenda, emphasizing managers’ perspectives on how firms and policymakers can better implement CE at the firm level.