The Social Dimension of the Circular Economy: A Review Towards a Comprehensive Narrative

The paper offers a comprehensive review of the social dimension of the circular economy. Recent studies on the social dimension toward the design and adoption of an inclusive circular economy are likely to fail without understanding the cultural and social variables in the societal transition towards the circular economy and how the social dimension can be integrated with the circular economy to contribute to sustainability. Based on a narrative literature review, the research builds a macro‐level analytical framework for the social dimension that encompasses four primary constructs: value chain adaptability, impact on society, adaptive capacity and public engagement. The framework can be used as an instrument to search and evaluate socially responsible circular businesses, a conceptual guide for circular business model design and a narrative platform for coordinating value chain actors, including consumers. Future research should investigate the micro‐level perspective to develop the framework further.