Corporate social responsibility initiatives are standards and measures that businesses put in place to benefit society. Generally speaking, these initiatives are based on sustainability in four different categories. The four types of Corporate Social Responsibility are environmental sustainability initiatives, direct philanthropic giving, ethical business practices and economic responsibility.
Environmental sustainability initiatives enacted by businesses generally focus on two main areas: limiting pollution and reducing greenhouse gases. As the awareness of environmental issues grows, businesses that take steps to reduce air, land and water pollution can increase their standing as good corporate citizens while also benefiting society as a whole. For example, Cisco Systems, a multinational technology company, has taken a variety of steps to reduce its carbon footprint, including the installation of photovoltaic systems at production facilities and developing platforms that allow employees to work from remote locations rather than commuting to the office.
Philanthropic initiatives include the donation of time, money or resources to charities and organizations at local, national or international levels. These donations can be directed to a variety of worthy causes including human rights, national disaster relief, clean water and education programs in underdeveloped countries. For example, Microsoft co-founder Bill Gates has donated billions of dollars to the Bill and Melinda Gates Foundation, which supports numerous causes including education, the eradication of malaria and agricultural development. The second one concerns the lack of a comprehensive, conceptual model presenting the relationship between innovation and CSR.
Despite fragmentary evidence, performed in different contexts and only indirectly referring to it, a firm attempt to model the relationship seems to be still missing. There is scarce conceptual and empirical evidence of the existence of the relationship. Moreover it attempts to model the relationship between innovation and CSR. The search encompassed Scopus — a comprehensive scientific database covering academic articles published in nearly journals.
The whole procedure is presented in Figure 1 accompanied by a descriptive component. The database was searched using diff erent combinati ons of the following terms: innovati on, novelty, improvement, social responsibility, CSR and sustain. The research was limited to papers published between January and August inclusive and to the subjecti ve areas of social science, business, management and accounti ng, and economics, econometrics and fi nance. Both English and American spellings were complied. Search terms were researched in ti tles, keywords and abstracts.
The procedure resulted in identi fying papers. The appraisal procedure was divided into two parts: exclusion and inclusion. The fi rst part aimed at choosing the papers most suitable for research from the set. The second part aimed at supplementi ng the set of chosen arti cles by the infl uenti al works named in the reference secti ons. The exclusion procedure was divided into two parts — technical and substanti al.
It was performed to assure the suitability of individual studies for the research. The remaining publications belonged to such domains as: business, management, accounting, economics, econometrics, finance, and general social science eliminated ones included computer science, medicine, engineering etc.
At this step of the literature review papers remained. The substantial part consisted of three siftings: title sifting, abstract sifting and full text sifting. Thirdly, the full text of the remaining papers was studied in detail.
At this step, 17 papers were eliminated, leaving 13, which fully concentrate on the studied relation, for further analysis. It was assumed that the references of the papers will be a valuable source of supplementary publications as 1 widely accepted publications should include good quality references and 2 the 9 texts concentrated on the studied relation. The procedure allowed incorporating 4 supplementary publications described as breakthrough and influential works.
Thus finally the set of analysed papers counted for 17 publications. The last steps of the literature study relied on content analysis. The data was synthesised in a table form. The breakdown into dependent and independent variables was delivered. As a result of the systematic literature review, 17 papers with models containing innovation and CSR variables were identified. However, only eleven papers delivered a clear breakdown into dependent and independent variables, and could be included in the meta-synthesis.
Further investigation concentrated on these eleven papers. The data was synthesised and presented in the Table 1. Eleven studied papers delivered 14 models explaining the studied relation. All the models included both innovation or CSR dependent and independent variables. As the models were different, but interrelated, a method of data integration was necessary. Moreover, the performed literature studies indicated that the analysis of the relation under investigation should cover not only exogenous, but also endogenous factors.
Therefore it was confirmed that specific features of the innovation and CSR themselves affected the studied relation. The meta-synthesis confirmed that the relation between innovation and CSR is mutual. Thus, both variables have an influence on each other. The procedure resulted in affirming that the relation is determined by the features of innovation and CSR themselves and moderated by a set of exogenous factors. The results of the analysis can be visualised on the graphic model — Figure 2.
The above model represents graphically the relation between innovation and CSR. It introduces the multi-typology analysis.
Conceptual framework development
The group of endogenous variables includes two basic features of innovation and three basic features of CSR. Such division resulted from previous research Szutowski, First, the innovation should be divided into five separate groups covering product, process, marketing, organisational and distributional innovation.
Second, three groups should be extracted: radical new to the market , new to the company, and incremental minor improvements innovation. The first variable divides CSR activities into proactive and reactive. This typology reflects whether a company acts to prevent some harmful events connected with the environment or society or reacts after they happen.
The second variable consists of five separate types of CSR covering defensive, philanthropic, marketing, strategic and systemic CSR Visser, The second typology reflects a way of development that a company can go through in terms of CSR. The third variable reflects the fields of CSR activity and embraces social, environmental, ethical, human rights and consumer concerns European Commission, Therefore the main explanations of the consecutive variables delivered in the studied set of articles are presented below:.
External factors EXTF included three variables: the market competition, membership in a group of companies and competition in cluster. The model implied that the innovation-driven-CSR and the CSR-driveninnovation depend on different endogenous variables, and slightly different exogenous factors. Despite the graphic form, innovation and CSR can be presented as functions of the abovementioned variables. Therefore the two functions, which represent the model, were proposed:. In the analytical form, the model was conveyed into two functions representing innovation-driven-CSR and the CSR-driven-innovation.
The operationalization of the included variables was not imposed. At the same time the research indicated that the relation depends on the group of endogenous variables covering innovation and CSR features. The mutual relation between CSR and innovation was confirmed. The assumption that CSR is an innovation driver seems to be broadly accepted European Commission, , The inclusion of the industry variable in the models is a common practice, as a division on innovative and non-innovative as well as CSRintensive and CSR-non-intensive industries was often mentioned in the literature.
It remains relevant because the social problems and innovative opportunities in different industries can vary widely. For the purposes of this particular research, the authors divided industries twofold, e. Furthermore Husted and Allen and Alvarez, Lorenzo and Sanchez divided industries more precisely, taking into consideration numerous different industries.
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The reason for such a difference results from the focus of the particular paper. The company characteristics were represented by company size, age and such soft qualities as ability to plan efficiently the continuity of change and ability to adjust to unforeseen circumstances. The impact of company size and age on its innovativeness or CSR activities is intuitive.
Yet, companies change over time in terms of many features. As far as innovation is considered, it is worth taking notice of Pavelin and Porter which proved the positive relationship between the probabilities of innovation and firm size. Although size and age of the company are the predominantly used operationalizations due to the inclusion simplicity, it seems worthy to consider different proxies as well.
The ability to plan efficiently the continuity of change and the ability to adjust to unforeseen circumstances indicate that the company is able to continuously realise innovation and CSR strategies regardless of threats and inconveniences. The relationship between CSR and financial performance was the subject of numerous researches Curran, According to Curran the performance variable could be represented by market measures e.
Variable inclusion was supported by literature indicating that innovation and social responsibility are mainly caused by corporate culture and management attitude Abugre, External factors included in the model were represented by the market competition, membership in a group of companies and competition in cluster. Literature confirming that having presence in the group influences the relation between CSR and innovation is scarce.
As far as market competition is considered it is the factor fostering corporate social responsibility Flammer, Moreover it is often equated with innovation or treated as its proxy. The model presented in the articles consisted of variables that were identified in the literature focusing on the relation between CSR and innovation. The literature denying the inclusion of any of the variables was not identified.
The set of variables included in the model remains open; the model was not intended to contain all the possible variables, but only the most significant ones. The growing importance of both company innovation and company CSR practices, results from the high competition faced by entities operating in the contemporary market.
Moreover, constant development, in association with taking into consideration the needs of all stakeholders, seems an absolute necessity. However, the interdependence between innovation and CSR still constitutes an important research gap. The research relied on systematic literature studies and the meta-synthesis approach.
Article: Carroll’s Corporate Social Responsibility Pyramid
Second, two main features of innovation determining their effects on CSR were indicated: type and degree of novelty involved. Third, three features of CSR important in the light of its impact on innovation were pinpointed: type of reaction, degree of development, and field of activity. Finally, the relation was presented in the graphic and functional models with a descriptive component. The purpose of the research was achieved to a large extent. However, the study was not free of limitations. The technical limitation concerned the article selection, which confined the set to the papers written in English.
Moreover, the model was built on the evidence from empirical researches. However, its final form was not tested empirically. Therefore the model constitutes a starting point for in-depth studies. Piotr Ratajczak , Ph.
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Publishing partner. Model Approach. Figure 1. The strategy of literature review The database was searched using diff erent combinati ons of the following terms: innovati on, novelty, improvement, social responsibility, CSR and sustain. Analysis As a result of the systematic literature review, 17 papers with models containing innovation and CSR variables were identified. Table 1. Figure 2. Therefore the main explanations of the consecutive variables delivered in the studied set of articles are presented below: The industry variable IND stood for the industry in which a company operates.
Conclusions The growing importance of both company innovation and company CSR practices, results from the high competition faced by entities operating in the contemporary market. References Abugre, J. Corporate Governance, 14 1 , Alvarez, I. Corporate social responsibility and innovation: a resource-based theory. Management Decision, 10 10 , Bocquet, R. Are firms with different CSR profiles equally innovative? Empirical analysis with survey data. European Management Jorunal, 31, Booth, A. Carroll, A. Corporate social responsibility. Evolution of a definitional construct.
Curran, M. University of Edinburgh, Edinburgh, Scotland. Drucker, P. The Practice Of Management. London: Harper Collins. European Commission. Green Paper. Brussels, Belgium. Fattemi, A. Sustainable finance a new paradigm. Global Finance Journal, 24, Flammer, C.
Does product market competition foster corporate social responsibility? Evidence from trade liberalization. Strategic Management Journal, 36 10 , Gonzalez-Padron, T.
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