How to close the circle - The role of social capital in a circular economy - A case study

Abstract

The purpose of this case studyistoinvestigatehowacompanyutilizessocialcapitalinorder to closeloopsinitscirculareconomy.Thecirculareconomymodelhasinrecentyearsgained popularity mainly due to the rising concern surrounding the environment. The model offers solutions to how materials can flow in a circle in order to minimize waste and therefore the need for new non-renewable and virgin materials. This research looks behind this flow, specifically at how the main actor, the case of this study, has used their social capital in the process of creating and closing their material circle.

In order to do this, the authors will investigate a company's network based on Nahapiet and Ghoshal’s, (1998) different dimensions of social capital. This paper will also go further by discussing relevant downsides on social capital and the implementation of ethical perspectives. The conclusion of this paper is that understanding how to use social capital plays an essential role in the creation of circular economies. It is especially true when a company, such as in this case, has strong ethical and environmental core values connected with ethical business perspectives, which creates favorableconditionsofclosingthecircle.It can be facilitated through transparency, trust, and understandingwhenmanagingpresentand potential future stakeholders connected with the circle.