Managing internal value retention for sustainability

Abstract

The productive activities in the linear production system are associated with pollution and other consequences for the human environment. Because of this, the circular economic model is attracting attention to correct the shortcomings of the linear economic model and thus enhance sustainability. This study employs a descriptive literature review to examine managing internal value retention for sustainability. Drawing from the theory of circular economy, the study examines how the management of value retention, especially internal value retention, can boost firm profitability, reduce adverse environmental impacts and thus support environmental sustainability. The results indicate that internal value retention can boost the profitability of a conglomerate and therefore, stimulate the expansion of operations and the attendant increase in employment. Furthermore, internal value reten¬tion can significantly mitigate the externalities associated with production, especially the environmental and social consequences. These and its capacity to extend product lifetime through the reduction of production and consumption enable it to enhance the sustainability of the human environment. The utilisation of value retention processes also supports the facilitation of sustainability. The study suggests the need for manufacturing companies to promote the adoption and popularisation of value retention processes such as repair/ reuse, remanufacturing/recycling, and decoupling to facilitate the enhancement of sustainability globally.