Circular Economy and Corporate Sustainability in Bangladesh's Ready-Made Garment Industry

Problems and Prospects

Abstract

Purpose: The ready-made garments sector in Bangladesh contributes to 81.82% of national exports and employs well over four million workers. Nonetheless, this sector encounters substantial challenges in implementing circular economy principles to achieve corporate sustainability. This study identifies essential factors that can enhance corporate sustainability in the ready-made garments sector of emerging economies by addressing significant issues, challenges, and opportunities related to supply chain management, technology, government policies, and circular economy principles. The study presents a research paradigm for achieving corporate sustainability based on a rigorous evaluation of the literature.

Methods: The study employs systematic reviews using the PRISMA strategy to retrieve comprehensive documentation. This methodology enables a comprehensive scoping of exploratory themes, adjusting search terms repeatedly to gather interdisciplinary perspectives on the integration of corporate sustainability into the circular economy.

Results: The research highlights the importance of corporate sustainability within the Bangladeshi ready-made garments sector, focusing on technology, government involvement, supply chain dynamics, and the circular economy. Despite financial limitations, infrastructural challenges, and talent deficiencies, the industry has the potential for environmental, social, economic, and political sustainability.

Originality: This study presents a novel framework that examines the interplay of technological capabilities, supply chain flexibility, governmental influence, and the circular economy within Bangladesh's ready-made garment sector, aiming to achieve corporate sustainability.

Implications: The research offers industry practitioners valuable insights for enhancing technical training, implementing regulatory reforms, and advancing infrastructure development, thereby facilitating an effective transition to a circular economy. This understanding can help governmental entities and industry leaders craft policies that strike a balance between environmental, economic, political, and social responsibilities.