Virtuous circles: Transformative impact and challenges of the social and solidarity circular economy

The conventional view tends to consider the social dimension of the circular economy as conspicuous by its absence. This paper draws attention to business strategies and organisational practices that bring together the valorisation of wasted material resources and marginalised people. Theoretically, we build on the literature on hybrid forms of organisation and management typical of the social and solidarity economy (SSE)—for example, social cooperatives—to introduce a more realistic and dynamic model of social and solidarity circular economy (SSCE). Offering a definition of SSCE based on existing hybrid organisational practices rather than abstract ideals, we juxtapose the SSCE and the current corporate‐led CE approach across three key dimensions: strategic aims; organisational boundaries and governance mechanisms. To illustrate how this SSCE works, we focus on the case of CAUTO, an Italian network of circular social cooperatives based in Northern Italy. We identify three intertwined steps through which CAUTO developed an effective SSCE strategy: social circular innovation, networked actions and participatory scaling up. Taken together, our findings suggest a realistic pathway to business circularity that is inclusive, pragmatic and embedded in social practices.