Positive sustainable purpose in a circular economy: The importance of sustainable innovation

Abstract

This conceptual article builds on a sustainability-based perspective and research into sustainable innovation to develop a conceptual framework, which underscores the relevance of a positive sustainable purpose at the organizational level to match the growing sustainability awareness at individual and interorganizational levels. Illustrative examples indicate that a positive sustainable purpose does not generally question a firm's 'for profit' strategy. It is defined as a higher corporate purpose, which describes an organization's enduring reason to exist in the future considering a positive impact on planet and people in addition to profits, not instead of profits. In a circular economy, the present focus of most firms' ESG (environment, social, governance) strategies will be insufficient, and sustainable innovations to achieve real transformation towards circular business models deserve more attention. The drivers of sustainable development call for adapting a firm's strategic goals, innovation projects, and reason to exist towards including environmental and social aspects.