How Different Csr Affects Different Innovations In Firms

Running head: HOW DIFFERENT CSR AFFECTS DIFFERENT INNOVATIONS IN FIRMS
How different CSR affects different Innovations in Firms
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HOW DIFFERENT CSR AFFECTS DIFFERENT INNOVATIONS IN FIRMS1
Table of Contents
Introduction................................................................................................................................2
Problem Statement.....................................................................................................................3
Research Questions....................................................................................................................3
Literature Review.......................................................................................................................3
CSR-Innovation Research......................................................................................................3
Corporate Innovation Process................................................................................................5
Impacts of Reactive and Proactive CSR on the Exploitative and Exploratory Innovation....5
Literature Gap............................................................................................................................8
References:...............................................................................................................................10

HOW DIFFERENT CSR AFFECTS DIFFERENT INNOVATIONS IN FIRMS2
Introduction
The ever increasing significance of Corporate Social Responsibility (CSR) and its
effect on the value of a firm is often considered to be a significant shift in the management
paradigm. According to many researchers, the companies that fail to take the requirements and
needs of its stakeholders in account are likely to experience an eventual decline of their
marketing value (Reypens, Lievens & Blazevic, 2016; Slack, Corlett & Morris, 2015).
However, it is to mention that innovation is widely considered to be one of the important
pathways by means of which the CSR balances the financial and social performance of the
companies and helps in achieving their sustainable goals. According to O’Riordan and
Fairbrass (2014), CSR reflects the level to which a company actively engages in the social
initiatives as a response to a diverse set of stakeholders’ interests. At the same time, innovation
is regarded as the key element that determines the ability of a company to sustain its
competitive edge in contemporary days. However, given the high extent of influence of CSR in
the performance and strategy of a company, it is required to understand the diverse factors that
drive the company’s engagement in CSR activities. A myriad of researches have demonstrated
that companies make use of CSR for enhancing their social image and brand reputation in
order to differentiate themselves effectively and gain a competitive edge over the other market
players (He & Lai, 2014). Notwithstanding this fact, the prospective relationship or linkage
between CAR and the other business strategy and innovative process has not been thoroughly
investigated. For gaining a better understanding of this relationship, it is required to examine
whether a company’s innovative affects its engagement in the CSR activities.
This paper shall elaborate on presenting a research paper on examining- ‘how different
types of CSR affects different organisational innovation”.

HOW DIFFERENT CSR AFFECTS DIFFERENT INNOVATIONS IN FIRMS3
Problem Statement
There are many studies that have found a productive relationship in between CSR and
innovation process of organisations, while others have demonstrated some unimportant
associations in between these constructs. For resolving the issue of inconsistency, this study is
presented in an attempt for exploring the influences of different CSR types on the process of
organisational innovation and how innovation affects the engagement of organisation in CSR
activities. It is assumed that after conducting the research paper, these gaps would get bridged
and idea on how innovation influences organisational engagement in CSR activities will
become clear.
Research Questions
The research study focuses on the relationship between Innovation and CSR and targets
at exploring the below mentioned research questions:
a) Do different types of innovations affected by different types of CSR?
b) Does innovation affects organisation’s engagement in CSR?
For addressing these above mentioned research questions, the research paper is built on the
institutional theory for examining the impacts of the different types of CSR- Reactive CSR and
Proactive CSR on the innovation and the role of innovation on increasing organisation
engagement in CSR.
Literature Review
CSR-Innovation Research
It is to mention that on an academic level, the relationship in between technological
innovation and CSR has still not been evidenced. Literature studies on the topic of CSR