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Diagnostic Study to Evaluate the Degree of Development of the Circular Economy in Chilean Companies through the Application of a 5D Model

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  • Juan Carlos Armijos Armijos

    (School of Auditing and Management Control, Faculty of Economics and Business, Universidad Santo Tomas, Av. Ejercito Libertador, 146, Santiago 7510000, Chile
    These authors contributed equally to this work.)

  • Karen L. Ziller Carvajal

    (School of Auditing and Management Control, Faculty of Economics and Business, Universidad Santo Tomas, Av. Ejercito Libertador, 146, Santiago 7510000, Chile
    These authors contributed equally to this work.)

  • Paola von-Bischoffshausen León

    (Department of Auditing, Accounting and Management Control, Faculty of Economics and Administration, Universidad Católica del Norte, Av. Angamos, 0610, Antofagasta 1240000, Chile
    These authors contributed equally to this work.)

  • Alex Araya Mena

    (Department of Auditing, Accounting and Management Control, Faculty of Economics and Administration, Universidad Católica del Norte, Av. Angamos, 0610, Antofagasta 1240000, Chile
    These authors contributed equally to this work.)

Abstract

Recently, concepts such as sustainable development, corporate social responsibility, and the circular economy have gained considerable prominence, transforming production models and business practices. However, there remains a degree of uncertainty regarding the actual level of adoption of these initiatives by companies. The objective of this study is to assess the level of implementation of the circular economy in Chilean companies using a 5D model, applied through an assessment tool called “5D Circular”. This model analyzes five key business dimensions: finance, customers, internal processes, learning and growth, and conscious integration. The study was carried out on a sample of 90 companies, using a scale of 1 to 5, where 1 represents a very low level of development and 5 a very high level. The results show that the companies in the sample have achieved a high level of implementation of the circular economy. However, the dimensions of internal processes and conscious integration show a comparatively lower level of development compared to the dimensions of learning and growth and finance, which show a high level of development. It is worth noting that all companies show advanced knowledge and significant application of the circular economy.

Suggested Citation

  • Juan Carlos Armijos Armijos & Karen L. Ziller Carvajal & Paola von-Bischoffshausen León & Alex Araya Mena, 2024. "Diagnostic Study to Evaluate the Degree of Development of the Circular Economy in Chilean Companies through the Application of a 5D Model," Sustainability, MDPI, vol. 16(18), pages 1-23, September.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:18:p:8145-:d:1480423
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    References listed on IDEAS

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    1. Levänen, Jarkko & Lyytinen, Tatu & Gatica, Sebastian, 2018. "Modelling the Interplay Between Institutions and Circular Economy Business Models: A Case Study of Battery Recycling in Finland and Chile," Ecological Economics, Elsevier, vol. 154(C), pages 373-382.
    2. Mark Anthony Camilleri, 2020. "European environment policy for the circular economy: Implications for business and industry stakeholders," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(6), pages 1804-1812, November.
    3. Alan Murray & Keith Skene & Kathryn Haynes, 2017. "The Circular Economy: An Interdisciplinary Exploration of the Concept and Application in a Global Context," Journal of Business Ethics, Springer, vol. 140(3), pages 369-380, February.
    4. Iván Arribas & Paola von-Bischoffshausen & Paola von-Bischoffshausen & Fernando García & Javier Oliver, 2024. "The communication strategy of corporate social performance: a study of Chilean companies," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 11(3), pages 189-210, March.
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