IDEAS home Printed from https://ideas.repec.org/a/zbw/espost/342571.html

The stakeholder business case for circular economy: An ordonomic approach for developing a circular economy business case by stakeholder governance

Author

Listed:
  • Schultz, Felix Carl
  • Valentinov, Vladislav
  • Pies, Ingo

Abstract

Recent circular economy (CE) literature has examined the opportunities and limitations of business case logics, yet this area remains under‐theorized. This article contributes to the emerging debate by drawing on the stakeholder business case for sustainability from corporate sustainability literature, emphasizing the role of stakeholder collaboration in addressing sustainability challenges. By adopting the ordonomic approach from business ethics, we (re‐)conceptualize the stakeholder business case for CE, focusing on the dynamic interplay between profit motives and stakeholder collaboration. This article makes three key contributions. First, it bridges the gap between theoretical business case logics and CE practices, demonstrating how innovative stakeholder governance can foster incentive‐ and system‐compatible CE integration. Second, it contends that successful CE practices demand a comprehensive, system‐level approach that actively involves all stakeholders. It underscores the importance of broad stakeholder engagement in business case development and illustrates how such collaboration harmonizes individual and collective interests within a CE. Third, it expands the stakeholder business case for sustainability by introducing a conceptual distinction between stakeholders’ semantics, governance, and optimization. This distinction offers new opportunities to reconcile profit orientation with environmental stewardship, advancing the societal transition to a functional CE.

Suggested Citation

  • Schultz, Felix Carl & Valentinov, Vladislav & Pies, Ingo, 2025. "The stakeholder business case for circular economy: An ordonomic approach for developing a circular economy business case by stakeholder governance," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 29(4), pages 1279-1292.
    • Handle: RePEc:zbw:espost:342571
    DOI: 10.1111/jiec.70046
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/342571/1/Schultz_2025_stakeholder_business_case.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.1111/jiec.70046?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Markus Milne & Rob Gray, 2013. "W(h)ither Ecology? The Triple Bottom Line, the Global Reporting Initiative, and Corporate Sustainability Reporting," Journal of Business Ethics, Springer, vol. 118(1), pages 13-29, November.
    2. Chia‐Hao Ho & Steffen Böhm & David Monciardini, 2022. "The collaborative and contested interplay between business and civil society in circular economy transitions," Business Strategy and the Environment, Wiley Blackwell, vol. 31(6), pages 2714-2727, September.
    3. Kirchherr, Julian & Piscicelli, Laura & Bour, Ruben & Kostense-Smit, Erica & Muller, Jennifer & Huibrechtse-Truijens, Anne & Hekkert, Marko, 2018. "Barriers to the Circular Economy: Evidence From the European Union (EU)," Ecological Economics, Elsevier, vol. 150(C), pages 264-272.
    4. Felix Carl Schultz & Robert Jaroslav Reinhardt, 2023. "Technological Challenges and Opportunities to Plastics Valorization in the Context of a Circular Economy in Europe," Sustainability, MDPI, vol. 15(4), pages 1-10, February.
    5. Salzmann, Oliver & Ionescu-somers, Aileen & Steger, Ulrich, 2005. "The Business Case for Corporate Sustainability:: Literature Review and Research Options," European Management Journal, Elsevier, vol. 23(1), pages 27-36, February.
    6. Stefan Schaltegger & Florian Lüdeke-Freund & Erik G. Hansen, 2012. "Business cases for sustainability: the role of business model innovation for corporate sustainability," International Journal of Innovation and Sustainable Development, Inderscience Enterprises Ltd, vol. 6(2), pages 95-119.
    7. de Ridder, Kilian & Schultz, Felix Carl & Pies, Ingo, 2023. "Procedural climate justice: Conceptualizing a polycentric solution to a global problem," Ecological Economics, Elsevier, vol. 214(C).
    8. Gina Grandy & Albert J. Mills, 2004. "Strategy as Simulacra? A Radical Reflexive Look at the Discipline and Practice of Strategy," Journal of Management Studies, Wiley Blackwell, vol. 41(7), pages 1153-1170, November.
    9. Hielscher, Stefan & Everding, Sebastian & Pies, Ingo, 2022. "Ordo-Responsibility in the Sharing Economy: A Social Contracts Perspective," Business Ethics Quarterly, Cambridge University Press, vol. 32(3), pages 404-437, July.
    10. Charbel Jose Chiappetta Jabbour & Stefan Seuring & Ana Beatriz Lopes De Sousa Jabbour & Daniel Jugend & Paula de Camargo Fiorini & Hengky Latan & Wagner Colucci Izeppi, 2020. "Stakeholders, innovative business models for the circular economy and sustainable performance of firms in an emerging economy facing institutional voids," Post-Print hal-04275092, HAL.
    11. Gupta, Shivam & Chen, Haozhe & Hazen, Benjamin T. & Kaur, Sarabjot & Santibañez Gonzalez, Ernesto D.R., 2019. "Circular economy and big data analytics: A stakeholder perspective," Technological Forecasting and Social Change, Elsevier, vol. 144(C), pages 466-474.
    12. Tiberio Daddi & Domenico Ceglia & Guia Bianchi & Marcia Dutra de Barcellos, 2019. "Paradoxical tensions and corporate sustainability: A focus on circular economy business cases," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(4), pages 770-780, July.
    13. Stefan Schaltegger & Roger Burritt, 2018. "Business Cases and Corporate Engagement with Sustainability: Differentiating Ethical Motivations," Journal of Business Ethics, Springer, vol. 147(2), pages 241-259, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Schultz, Felix Carl & Valentinov, Vladislav, 2026. "Translating circularity into strategy: A governance meta‐capability framework," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 35(6), pages 8746-8758.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Felix Carl Schultz & Vladislav Valentinov & Ingo Pies, 2025. "The stakeholder business case for circular economy: An ordonomic approach for developing a circular economy business case by stakeholder governance," Journal of Industrial Ecology, Yale University, vol. 29(4), pages 1279-1292, August.
    2. Vladislav Valentinov & Felix Carl Schultz, 2025. "Non‐implementation as a driver of circular economy evolution: A Luhmannian systems‐theoretical perspective," Journal of Industrial Ecology, Yale University, vol. 29(5), pages 1461-1472, October.
    3. Valentinov, Vladislav & Schultz, Felix Carl, 2025. "Non‐implementation as a driver of circular economy evolution: A Luhmannian systems‐theoretical perspective," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 29(5), pages 1461-1472.
    4. Felix Carl Schultz & Vladislav Valentinov & Ingo Pies, 2025. "The Business Case for Circular Economy: A Co‐Evolutionary Perspective for Integrating Moral Cases Into Circular Economy Business Cases," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 32(4), pages 4329-4342, July.
    5. German Arana‐Landin & Waleska Sigüenza & Beñat Landeta‐Manzano & Iker Laskurain‐Iturbe, 2024. "Circular economy: On the road to ISO 59000 family of standards," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(3), pages 1977-2009, May.
    6. Schultz, Felix Carl & Valentinov, Vladislav & Pies, Ingo, 2025. "The Business Case for Circular Economy: A Co‐Evolutionary Perspective for Integrating Moral Cases Into Circular Economy Business Cases," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 32(4), pages 4329-4342.
    7. Jing Shao & Cedric Aneye & Alyona Kharitonova & Wei Fang, 2023. "Essential innovation capability of producer‐service enterprises towards circular business model: Motivators and barriers," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 4548-4567, November.
    8. Henner Gimpel & Valerie Graf-Drasch & Alexander Kammerer & Maximilian Keller & Xinyi Zheng, 2020. "When does it pay off to integrate sustainability in the business model? – A game-theoretic analysis," Electronic Markets, Springer;IIM University of St. Gallen, vol. 30(4), pages 699-716, December.
    9. Felix Carl Schultz & Vladislav Valentinov & Julian Kirchherr & Robert Jaroslav Reinhardt & Ingo Pies, 2024. "Stakeholder governance to facilitate collaboration for a systemic circular economy transition: A qualitative study in the European chemicals and plastics industry," Business Strategy and the Environment, Wiley Blackwell, vol. 33(3), pages 2173-2192, March.
    10. Florian Lüdeke‐Freund, 2020. "Sustainable entrepreneurship, innovation, and business models: Integrative framework and propositions for future research," Business Strategy and the Environment, Wiley Blackwell, vol. 29(2), pages 665-681, February.
    11. Stefan Schaltegger & Roger Burritt, 2018. "Business Cases and Corporate Engagement with Sustainability: Differentiating Ethical Motivations," Journal of Business Ethics, Springer, vol. 147(2), pages 241-259, January.
    12. Stuart Danvers & Jonathan Robertson & Ambika Zutshi, 2023. "Conceptualizing How Collaboration Advances Circularity," Sustainability, MDPI, vol. 15(6), pages 1-23, March.
    13. Schultz, Felix Carl & Valentinov, Vladislav, 2026. "Translating circularity into strategy: A governance meta‐capability framework," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 35(6), pages 8746-8758.
    14. Wei Qian & Carol Tilt & Dinithi Dissanayake & Sanjaya Kuruppu, 2020. "Motivations and impacts of sustainability reporting in the Indo‐Pacific region: Normative and instrumental stakeholder approaches," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3370-3384, December.
    15. María Belén Prados-Peña & Francisco Jesús Gálvez-Sánchez & Pedro Núñez-Cacho & Valentín Molina-Moreno, 2024. "Intention to purchase sustainable craft products: a moderated mediation analysis of the adoption of sustainability in the craft sector," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(1), pages 775-797, January.
    16. Mara Del Baldo & Maria-Gabriella Baldarelli, 2017. "Renewing and improving the business model toward sustainability in theory and practice," International Journal of Corporate Social Responsibility, Springer, vol. 2(1), pages 1-13, December.
    17. Preeti Sharma & Vijay Kumar Jain & Shrish Singh & Aditi Kumari, 2026. "Translating Circular Strategies into Performance Gains: A Study of Environmental Management Capabilities and Sustainability Reporting as a Strategic Mediator," Circular Economy and Sustainability, Springer, vol. 6(3), pages 1-30, June.
    18. Fabien Martinez, 2014. "Corporate strategy and the environment: towards a four-dimensional compatibility model for fostering green management decisions," Post-Print hal-02887618, HAL.
    19. Graziela Darla Araujo Galvão & Steve Evans & Paulo Sergio Scoleze Ferrer & Marly Monteiro de Carvalho, 2022. "Circular business model: Breaking down barriers towards sustainable development," Business Strategy and the Environment, Wiley Blackwell, vol. 31(4), pages 1504-1524, May.
    20. Timo Busch & Michael L. Barnett & Roger Leonard Burritt & Benjamin W. Cashore & R. Edward Freeman & Irene Henriques & Bryan W. Husted & Rajat Panwar & Jonatan Pinkse & Stefan Schaltegger & Jeff York, 2024. "Moving beyond “the” business case: How to make corporate sustainability work," Business Strategy and the Environment, Wiley Blackwell, vol. 33(2), pages 776-787, February.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:espost:342571. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/zbwkide.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.