Artificial intelligence predictor of circular economy actions in the social economy

Abstract

Corporate social responsibility (CSR) encompasses companies’ voluntary actions that integrate economic, social, and environmental concerns into their operations. Concurrently, the circular economy (CE) has emerged as a transformative organizational paradigm that replaces the traditional linear “take-make-dispose” model with a regenerative system to minimize waste and optimize resource use. This study harnessed artificial intelligence (AI) as a tool for predicting circular practices and exploring how CSRI can indicate organizations’ orientation toward CE principles. To this end, the research conducted partial least squares (PLS) structural equation modeling using SmartPLS software to analyze a sample of 129 social economy organizations in Spain. The findings confirm the validity of the proposed causal relationships and demonstrate the potential of AI-assisted analytical approaches for modeling complex constructs. Overall, the results contribute to the literature on the intersection of CSR and CE by providing theoretical and practical insights into how digital technologies can facilitate the transition from linear to circular business models in the social economy sector.