Modeling Social Circular Economy Business Models in the Fashion Industry: The Atelier Riforma Case Study

Abstract

The crucial role of circular economy business models (CEBMs) in mitigating environmental degradation and decoupling economic growth from material use has been globally recognized in the literature across every economic sector. However, while the environmental benefits of circular economy (CE) are well documented, its social value has only recently begun to receive scholarly attention. Indeed, the question how organizations with a circular business model and an integrated social mission minimize negative environmental impacts while amplifying positive social outcomes remains unclear. This chapter aims to theorize the emergent social circular economy (SCE) by analyzing a case study focused on Atelier Riforma, an Italian innovative start-up with a social vocation in the apparel sector, and modeling novel integrated CEBMs. Employing semi-structured interviews, direct observations, and internal documents, this study sheds light on the operationalization of CE principles intertwined with a social mission. It discusses, in terms of material, financial, and impact flows, how SCE strategies in a sector currently highly unsustainable as the fashion industry may create (financial) value by recovering garments and simultaneously creating both social (i.e., labor value) and environmental (e.g., the reduction of material) value. This chapter, hence, enriches the discourse on CE and the social and solidarity economy (SSE) by illustrating how innovative platform business models may address and assess the dual objectives of environmental sustainability and social equity.