How does the circular economy achieve social change? Assessment in terms of sustainable development goals

Abstract

AbstractAchieving sustainable development is today a basic premise for all companies and governments. The 2030 Agenda has outlined an action plan focused on all areas and interest groups. Achieving economic growth and technological progress, social development, peace, justice, environmental protection, inclusion and prosperity represent the main areas to achieve social change. Furthermore, the circular economy is capable of improving the efficiency of products and resources, and can contribute to this social change, but there is a gap in the literature regarding whether the orientation of the companies in their circular economy strategy can lead to the achievement of the sustainable development goals. The objective of this study is to develop an initial circular economy-sustainable development goals (CE-SDGs) framework that considers the circular economy as the precedent and sustainable development goals as a consequence of implementing a circular economy. With respect to the methodology, the literature linking the relationship between the circular economy and sustainable development goals was reviewed first. A Structural Equation Model with the Partial Least Squares technique was also employed, analyzing two complementary models in enterprises involved in the Social Economy in the Autonomous Community of Extremadura (Spain). Regarding the results obtained, a link has been observed between professional profiles and training in people-oriented activities. The same does not occur for activities oriented toward the planet. Moreover, the existence of corporate reports that obtain data on circular activities is crucial to achieving orientation toward the sustainable development goals, for activities oriented toward both people and the planet. Finally, the results confirm that the existence of barriers and incentives determines the observed results, being aware that the lack of specialized training in human resources always has a significant incidence. Using resource and capability and dynamic capabilities theories, this study contributes with an initial framework by joining two lines of research and analyzing the CE-SDGs link in SE enterprises. Future research and empirical validations could contribute more deeply to the literature. As key recommendations, social economy managers must be committed to introducing circular economy practices to achieve people- and planet-oriented objectives, being proactive in fostering CE-SDGs frameworks.