Corporate social responsibility and corporate innovation efficiency: evidence from China

Purpose - This study aims to analyse the impact of corporate social responsibility (CSR) on corporate innovation efficiency and the mechanism underlying this effect. Design/methodology/approach - Data of non-financial listed companies operating in China from 2010 to 2019 were employed. Dual fixed-effects and dynamic panel models were used to explore the relationship between CSR and corporate innovation efficiency, and analyse its heterogeneity. Findings - The researchers found that CSR reduces innovation efficiency in China. Further, (1) when enterprises conduct CSR to obtain excess returns, it is easy to form excess goodwill; (2) under the pressure of the government and society, enterprises passively assume CSR, thereby crowding out R&D funds; and (3) regardless of whether companies in the high-tech industry actively or passively assume social responsibilities, CSR will not have a significant impact on their innovation efficiency. Research limitations/implications - The sample of this research is limited to Chinese A-share listed companies and lacks consideration for small and medium-sized enterprises. Therefore, whether the conclusions of this article are applicable to small and medium-sized enterprises or family enterprises needs further verification. Practical implications - The research explores the intrinsic motivation and possible consequences of CSR from the dual perspectives of corporate active and passive. Social implications - The ultimate goal of a firm is to make a profit. In practice, few enterprises pay without any return. Perhaps some companies actively assume social responsibilities in order to obtain greater benefits, while passively assume social responsibilities due to oppression. Originality/value - This study analyses the impact of CSR on corporate innovation efficiency from both active and passive perspectives. The results have important implications for government officials and entrepreneurs.