Stakeholder engagement is a crucial part of business models for sustainability (BMfS), but companies struggle to implement it. One approach that could be leveraged is the concept of proximity, as it can enable sharing of knowledge and values. However, there is a lack of studies exploring proximity dimensions in BMfS and how they can be combined to facilitate the integration of stakeholder engagement in BMfS. Based on multiple case study research, this paper fills this gap by proposing the Stakeholder engagement in BMfS proximity framework, highlighting how five BMfS proximity dimensions (identity, production and supply chain, functional, inter-organizational and environmental proximity) can be combined in BMfS components through three distinctive strategies—adaptation, association, and identity strategy. These strategies facilitate stakeholder engagement by creating the perception of multiple localities, multiple communities, or a combination of those, providing an enhanced conceptual understanding of stakeholder engagement in BMfS for academics and practitioners.