Does corporate social responsibility influence corporate innovation? International evidence

Abstract

Whether corporate social responsibility (CSR) affects corporate innovation remains controversial in the literature. We re-examine this issue using a newly available comprehensive innovation database on 20 countries and find support for the view that CSR performance fosters innovation. This effect of CSR is reflected on corporate innovation through its environmental and social dimensions. We also show that the effect of CSR on corporate innovation is less pronounced in emerging countries, but this is driven only by the environmental dimension of CSR. Finally, in comparison to common-law countries, we report a more positive impact of CSR on innovation in civil-law countries.