In the pursuit of sustainable development, the Circular Economy has emerged as a powerful tool for achieving the Sustainable Development Goals and catalyzing transformative social change. This study delves into the symbiotic synergy between CE and SDGs, focusing on Social Economy enterprises in the Autonomous Community of Extremadura, Spain. By developing a novel CE-SDGs framework, the research aims to shed light on how CE practices can contribute to the attainment of SDGs, particularly in terms of people- and planet-oriented activities.
The study begins by reviewing the literature linking CE and SDGs, highlighting the gaps in the existing knowledge. While previous research has explored the relationship between these two concepts, there is a lack of a comprehensive framework that captures the multifaceted nature of their interaction. To address this gap, the authors propose a CE-SDGs framework that positions CE as the precedent and SDGs as the consequence of implementing circular practices.
To test the proposed framework, the study employs two complementary structural equation models using the partial least squares technique. The models are applied to SE enterprises in Extremadura, which are known for their natural and social focus, making them an ideal subject for examining the repercussions of CE practices on economic, social, and environmental aspects.
The first model, the CE precedent model, investigates whether SE enterprises involved in CE activities have adequately defined their professional profiles, provided sufficient training to their stakeholders, and gathered enough information on sustainability and CE. These factors are crucial for the successful implementation of circular practices and the achievement of SDGs.
The second model, the SDG consequence model, explores whether SE enterprises are oriented toward achieving SDGs and are capable of attaining them, particularly in terms of people- and planet-oriented activities. This model reflects the greater emphasis on these goals proposed by previous studies and aims to provide objective evidence of the relationship between SDGs and CE.
The study's findings reveal several key insights. Firstly, a link has been observed between professional profiles and training in people-oriented activities, suggesting that investing in human capital is essential for achieving social objectives. However, the same link is not observed for planet-oriented activities, indicating a potential area for improvement.
Secondly, the existence of corporate reports that obtain data on circular activities is found to be crucial for achieving orientation toward SDGs, both for people- and planet-oriented activities. This highlights the importance of transparency and accountability in driving sustainable practices.
Lastly, the results confirm that the presence of barriers and incentives significantly influences the observed outcomes. The lack of specialized training in human resources is identified as a persistent obstacle, emphasizing the need for targeted capacity-building efforts.
By employing resource and capability and dynamic capabilities theories, this study contributes to the literature by joining two lines of research and analyzing the CE-SDGs link in SE enterprises. The proposed CE-SDGs framework offers a holistic perspective on the relationship between these concepts, expanding upon previous studies that have focused on specific SDGs or CE strategies.
The findings of this research have important implications for SE managers, who must be committed to introducing CE practices to achieve people- and planet-oriented objectives. Proactive efforts to foster CE-SDGs frameworks are crucial for driving sustainable development and social change. Future research and empirical validations can further contribute to the literature by refining and expanding the proposed framework.
