Does Corporate Social Responsibility Influence Corporate Innovation?

Abstract

This study investigates the impact of corporate social responsibility (CSR) on corporate innovation. We selected the listed nonfinancial firms of South Asian Economies. The sample of the study comprised a total of 426 listed manufacturing firms of South Asian Countries for period spans 10 years from 2012 to 2021. In this study, descriptive statistics, multicollinearity diagnostic tests, correlation analysis and two-step dynamic panel system generalized method of moments (GMM) were applied to analyze the data. CSR measured with three proxies' social indicators, environmental indicators, and CSR composite index of social and environmental indicators. However, corporate innovation is captured with number of citations received in a year and number of patents filed in the year. Overall, findings of the study using all measures of CSR shows that CSR significantly and positively related with corporate innovation. Our results find support for CSR-innovation view with all measures of CSR. The findings suggest that the current study is helpful for managers, regulators, policymakers, and researchers. For managers, the study helps them to make the CSR and innovation decision. The policymakers should take appropriate innovative decision while considering factors such as CSR. This study can also be extended by considering this study for developed and emerging economies sample.

Citation

Ali, M., Hassen, M. and Sheikh, S.S. (2024), "Does Corporate Social Responsibility Influence Corporate Innovation?", Hunjra, A.I. and Hussainey, K. (Ed.) The Emerald Handbook of Ethical Finance and Corporate Social Responsibility, Emerald Publishing Limited, Leeds, pp. 373-396. https://doi.org/10.1108/978-1-80455-406-720241016