Social and solidarity economy insights for the circular economy: Limited-profit and sufficiency

Abstract

Given the call for societal transformations to foster sustainability transitions, we consider in what way the Social and Solidarity Economy (SSE) contributes to a more circular society. We build on recent critiques of mainstream Circular Economy (CE) and engage with the notion of sufficiency, with respect to defining limits for and by society, in considering social and ecological imperatives over profit motives. The main aim of our article is to analyse the implications of the normative principles and values of the SSE for ensuring an integral circularity approach. For that purpose, we conducted qualitative research involving 26 in-depth interviews with 31 key informants from 20 initiatives in two case studies: SSE networks in the Basque Country and Western Switzerland. We reveal how one of the guiding principles of the SSE – limited-profit – is a clear basis for a distinctive circularity approach towards sufficiency. Our main contribution is to demonstrate how SSE principles foster specific characteristics of the Sufficiency-driven Business Model (SBM) and shape an integral social circularity approach. This perspective on circularity results in entities that embrace the following measures: seeking to transform the economic system as a whole; prioritizing the implementation of the more transformative Rs (Refuse, Rethink, Reduce); recognizing limited profit as a core distinctive principle; minimizing overall consumption; raising conscious consumer engagement (satisfying needs over wants); fostering stakeholders’ cooperation and collaboration; and maximizing social and ecological aims over economic profitability.