Circular Approaches and Business Model Innovations for Social Sustainability in the Textile Industry

Abstract

The global textile industry typically is seen to have a negative image due to ethically questionable working and sourcing conditions in mainly Asian located low-cost production countries. The Rana Plaza building collapse in Dhaka, Bangladesh, on April 24, 2013, the DETOX campaign of Greenpeace, and the promotion of circular economy concepts by NGOs and scientists affected particularly companies such as H&M but not just exclusively. These aspects supported a change in corporate strategies toward more transparent communication and dissemination of statements and reports on corporate sustainability activities or strengthening commitment and involvement in multi-stakeholder initiatives to enhance social and environmental sustainability in sourcing and production countries. However, circular approaches focus mostly on economic and environmental sustainability, thereby neglecting the social dimension of sustainability and systemic change particularly necessary in the textile industry. In fact, limited understanding exists with regard to the following questions: Which topics and patterns concerning circular concepts and social sustainability or corporate responsibility have been considered in the global textile industry? In what way do academic viewpoints and corporate activities differ? We explore how discussions around circular approaches and business models for social sustainability in the textile industry have been evolving concurrently between 2008 and 2017 both in theory and in practice. The research employs a systematic software-based qualitative literature analysis in the context of the textile industry, thereby also exploring the illustrative practical example of the fast fashion retailer H&M. Our findings reveal that circular business models in the textile industry are becoming of increasing relevance, thus contributing to a sustainable development. However, particularly social aspects are underrepresented in scholarly publications on circular economy, yet promoted by textile companies. We conclude by highlighting implications and suggesting avenues for further research.