The Business Case for Circular Economy: A Co‐Evolutionary Perspective for Integrating Moral Cases Into Circular Economy Business Cases

Felix Carl Schultz, Vladislav Valentinov and Ingo Pies

Corporate Social Responsibility and Environmental Management, 2025, vol. 32, issue 4, 4329-4342

Abstract: The ongoing debate in corporate sustainability (CS) about the moral case versus the business case has recently made its way into the circular economy (CE) discourse, bringing with it new tradeoffs. Although the business case perspective emphasizes profitability, critics argue that the moral case must go beyond profit motives and include environmental and social goals. Despite the growing importance of this debate, a detailed analysis comparing the tradeoffs between business and moral cases within a CE context has been largely bypassed in the literature. This article aims to bridge this gap by exploring the contrasts between these cases and highlighting the co‐evolutionary relationship between them in the context of a CE transition. Our contributions to the debate are threefold: (1) We argue that many perceived limitations in the contemporary debate arise from viewing tradeoffs as statically inevitable rather than dynamically resolvable. (2) We conceptualize a co‐evolutionary relationship between business and moral cases, suggesting that over time, by innovative governance, elements of moral cases can be transformed into CE business cases. (3) We propose a definition of the business case for CE (i.e., CE business cases) contending that the profit motive inherent in business can, through innovative CE governance, be aligned with circularity and societal well‐being.

Date: 2025
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https://doi.org/10.1002/csr.3188

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Persistent link: https://EconPapers.repec.org/RePEc:wly:corsem:v:32:y:2025:i:4:p:4329-4342

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