Leveraging the Science and Practice of Industrial and Organizational Psychology for Effective Circular Economy Implementation

Instead of following an “end-of-life” concept, the circular economy focuses on reducing, or alternatively reusing, recycling, and recovering materials in production, distribution, and consumption processes. Despite its potential to contribute to organizational environmental sustainability goals, there is much uncertainty about how the circular economy can be effectively implemented. So far, industrial and organizational (I-O) psychological science and practice have largely neglected how factors such as employee attitudes and motivation, teamwork, leadership behavior, and work design may contribute to the implementation of circular economy practices. Accordingly, the aim of this focal article is to outline how expertise from I-O psychology could be used for effective circular economy implementation. To achieve this goal, we first briefly summarize the history and current practices of the circular economy. Second, we expand the current understanding of the circular economy by adding an I-O psychology perspective. Third, we link the circular economy to other relevant topics in I-O psychology, such as corporate social responsibility and employee green behavior. Finally, we outline how I-O psychologists could address one of the major challenges in the circular economy transformation: intra- and interorganizational cooperation within and across the circular value chain.