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.