Social inclusion and the circular economy: The case of a fashion textiles manufacturer in Vietnam

Abstract

AbstractThere has been significant growth in interest in the circular economy (“CE”) concept as a transformative solution to the prevailing linear economy, helping to solve various economic, environmental and social challenges. Nevertheless, pertinent issues such as societal inclusion, well‐being and equity remain peripheral in the contemporary CE debate. Fulfilling human needs has been recognised as a prerequisite for sustainable development and was implicitly and explicitly prevalent in parts of the seminal material on which the CE is based. However, the contemporary use of the concept by business has left it bereft of any convincing evidence that a CE will satisfy needs in a radically different way to the existing linear economy. As a result, there are few practical cases for business learning, and even fewer in a developing world context. This study explores a unique business venture implemented by a Vietnam‐based denim manufacturer, which simultaneously tackles two key development challenges: The inclusion of vulnerable communities and sustainable resource use. The venture employs persons with disabilities and utilises textile by‐products from the core production to produce a range of upcycled items (e.g., bags, cushion covers etc). This forms part of a broader company‐wide social sustainability and CE strategy. We utilise Max‐Neef's Human‐Scale Development proposal as a lens explore how the venture can support need satisfaction of these employees while being environmentally sustainable. We seek to provide a compelling practical case to illustrate how social impact and circularity can be simultaneously enhanced at the micro‐level.