CSR Firm Profiles and Innovation: An Empirical Exploration with Survey Data
GATE Working Paper No. 1117
18 Pages Posted: 8 Apr 2011
Date Written: April 4, 2011
This paper explores the relationship between different Corporate Social Responsibility (CSR) strategies and innovation. Using a survey carried out on CSR behavior of Luxembourg firms, we found two types of firms as far as CSR practices are concerned. Cluster 1 firms adopted CSR practices to achieve economic goals without resorting to the formalization of these practices. In contrast, cluster 2 firms “learn CSR by doing” and by establishing CSR procedures and tools. Then we match Community Innovation Survey (CIS) data and specific data collected on CSR clusters. We estimate Logit models to explain the different types of innovation (product, process, organizational). In comparison with the firms which don’t adopt CSR, firms in Cluster 1 are more innovative in terms of product and process once we control for firm characteristics and innovation drivers while firms in cluster 2 tend to reject innovation in process and adopt organizational innovation. These results, which show the link between the various CSR practices and innovation types, have important consequences in terms of managerial recommendations and public policy support for innovation.
Keywords: Corporate Social Responsibility, Innovation, Organizational, Practices, Product, Process
JEL Classification: O31
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