Chapter 1: Understanding Circular Happiness

Circular happiness is explored as a way of thinking about well-being, organisational health, and environmental sustainability that work together. Based on the ideas of the circular economy, it shifts the definition of happiness from a straightforward pursuit of pleasure or material success to a dynamic, self-sustaining process. In this chapter, the authors look at how psychological drivers, such as autonomy, mastery, purpose, and environmental alignment, interact with corporate culture and ecological design to create feedback loops that support long-term health. Based on a literature review, using systems theory, organisational behaviour, and best practices from around the world, this chapter discusses how both happiness and business models are transitioning from linear to circular thinking. Real-world examples and evidence from Bhutan’s Gross National Happiness (GNH) Index, along with companies like Patagonia and Interface, demonstrate how circular processes help people thrive, protect the environment, and maintain long-term employee engagement. Finally, the chapter highlights design tools like the happiness ecosystem canvas and the circular happiness flow model that can be used to implement these ideas in the workplace. This integrated approach encourages us to redefine success, not as growth at any cost, but as sustainable and inclusive growth across all human and planetary systems.