THE METHODOLOGICAL APPROACHES TO THE INTEGRATION OF THE CIRCULAR AND SUSTAINABLE ECONOMIES

An integrated representation of the concepts of circularity and sustainability and raising awareness on sustainability along with circularity is one of the most important economic challenges in modern business. The article proves that the unity of the concepts of sustainable development and circular economy empirically implies creation of benefits from the economic, as well as social and environmental protection point of view, but there are also contradictions between them. Improving the financial aspects of companies and maximizing profits does not mean the simultaneous achievement of social and environmental goals. The latter is its co-result in long run, and if social and environmental benefits are achieved by improving the financial performance of companies, then they become mutually beneficial conditions. In the maximization of profit and efficient use of resources, an important role is given to the technologies used in the circular economy, which hypothetically can ensure a low cost of production with fewer and recycled resources, have less impact on the environment and can increase the well-being of population. The paper shows that with introduction of circular economy, conflicts with sustainability goals forms, mainly in social and especially ecological fields, then it should be managed by the relevant labor or environmental legislation, thus, in case of Georgia, small and medium enterprises suffer. Today, with succeeding development, more and more tasks are required to the manufacturers regarding the social and environmental sustainability. Competition for consumers puts transparency of information of resources and technology on the agenda, which manufacturers use, especially in the supply of agricultural products as well as production of food products, where a significant effect can be achieved with strict regulations. Implementation of circular and sustainable development concepts requires political will, strong legislative intervention and a state strategy to rise social awareness. The formation of the circular economy fulfills the function of an intermediary to achieve the environmental safety goals along with the economic goals. Today, if the concept of sustainable development is essentially based on the regulatory role of the state, the rise of awareness and the activity of civil society, are also the result of the implementation of circular economy concept. If the sustainable development is essentially a political issue, where the importance of regulatory interventions of the state is great, its implementation depends on the social responsibility of companies, which can only be reflected in their longterm strategy. Circular economy is a bridge that ensures both economic profit and sustainable development. The regulations that stimulate the circular economy simultaneously serve the goals of sustainable development. Therefore, the emphasis on the circular economy becomes the way to achieve sustainability.