Circular economy orientation from corporate social responsibility: A view based on structural equation modeling and a fuzzy-set qualitative comparative analysis

Seeking sustainable development, companies voluntarily implement Corporate Social Responsibility (CSR) through the Triple Bottom Line (TBL) approach, considering economic, social and environmental aspects of interest to global society. Searching for sustainable development, the Circular Economy (CE) emerged as a new philosophy of life to meet the new challenges in society. This research links CSR and CE but considering jointly the Institutional and Stakeholder Theories to delimit the sustainable development framework from the EC approach driven by CSR. According to this framework, it was tested whether the CSR practices of companies positively and significantly impacts on a business orientation towards CE, through two models (Model A and Model B) each of them analyzed with two independent samples of companies in Spain. Both samples are composed of Small and Medium Enterprises (SMEs) at two different stages of CSR adoption. The hypotheses were analyzed through a structural equation modeling-fuzzy-set qualitative comparative analysis (SEM-fsQCA). The result of the SEM supports the hypothesis in both models. So, CSR practices are driving companies towards CE, incorporating propositions on stakeholders' value creation. Moreover, an fsQCA revealed combinations of relationships that ensure the consistency of obtained results, generating five configurations based on two models defined. Main contribution of this work is CSR practices of companies and their orientation towards CE can be linked. This encourages to deep in analysis about the relations between CE and CSR, and of the specific CSR practices that should be enhanced for their beneficial effect on the implementation of CE.