Sustainable Circular Business Models: The Circular Economy Needs Responsibility and Purpose to Fulfil its Promises

Circular economy, as a concept of societal change towards a more balanced view of achieving the tripartite objectives of profit–people–planet, is a useful reference point for companies which are solely limited to a shareholder view. This goes hand in hand with the long overdue transformation from shareholder-capitalism to a stakeholder- and planetary-driven sustainable economy. However, circular economy per se does not guarantee the achievement of sustainability, as in most cases it is still economically driven. Only paired with responsibility and purpose (on the owner’s side), means of circular economy result in sustainable circular business models, which we consider as the basis of a future economic system for the benefit of planet and society. Using five examples from the apparel and footwear industry, we develop a framework and three design propositions to illustrate archetypes and pathways how companies can transform their business models from purely economic-driven into sustainable circular business models (Remark: Parts of this chapter have been presented at The ISPIM Innovation Conference – Innovating Our Common Future, Berlin, Germany on 20–23 June 2021.).