The implementation of the circular economy requirements among Hungarian enterprises - capital versus countryside

Abstract

In the spirit of sustainability business organisations have also put the circular approach to the forefront, and are trying to conduct their activities accordingly. They are developing technological improvements, innovative products and services to reduce their environmental footprint. The importance of protecting the environment and the principles of the circular economy have become key competitiveness factors. This study presents the commitment to the circular economy approach at the level of economic organizations. The survey included the 5,000 largest enterprises based on the number of employees established in Hungary in the form of an electronic questionnaire, from which the results from 202 responding enterprises were evaluated. Our research questions focus on what clusters companies can be classified into according to the environmental orientation in accordance with the framework of a circular economy, and whether there is a correlation between the companies' belonging to each cluster and their territorial location. The main methods used to analyze the results were Spearman's rank correlation coefficient, Cronbach's alpha, cluster analysis and cross-tabulation analysis. The results show that enterprises can be divided into three clusters based on the environmental focus, and the difference between the capital and the countryside is also strongly felt. Based on the results, we can state that the nationwide analyzes show that the paradigm shift has really started in the business practice, measurably in favor of rural enterprises. Businesses have recognized that their territorial competitiveness position will be strengthened if they adopt an environmentally sound management approach.