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The influence of financial performance on corporate social innovation

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  • Daniel Alonso‐Martínez
  • Nuria González‐Álvarez
  • Mariano Nieto

Abstract

The study draws from the literature on corporate social innovation (CSI) and financial performance and extends previous studies about this relationship. In addition, given the scant literature on corporate social innovation, the paper tries to generate a common framework for this topic. It proposes a definition and a measure of CSI. The measure aims to reflect the contribution that firms make to society in terms of innovation. The sample includes firm observations that cover 6‐year longitudinal panel data, including 1,122 firms in 29 countries. Our findings confirm that firms invest their financial resources (mainly firm performance) in CSI but, instead of investing immediately, take at least 1 year to do so. Stakeholder engagement, the relevance of sustainable innovation business models, and social and environmental policies contribute to integrating CSI. Our study contributes to filling the gap in the literature on CSI and provides several implications for NGOs, managers, and policymakers.

Suggested Citation

  • Daniel Alonso‐Martínez & Nuria González‐Álvarez & Mariano Nieto, 2019. "The influence of financial performance on corporate social innovation," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(4), pages 859-871, July.
    • Handle: RePEc:wly:corsem:v:26:y:2019:i:4:p:859-871
    DOI: 10.1002/csr.1726
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    Cited by:

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    2. Dionisio, Marcelo & de Vargas, Eduardo Raupp, 2022. "Integrating Corporate Social Innovations and cross-collaboration: An empirical study," Journal of Business Research, Elsevier, vol. 139(C), pages 794-803.
    3. Ali Asghar Sadabadi & Zohreh Rahimi Rad, 2022. "How can Cross-sector Partnership Promote Social Innovation?," Systemic Practice and Action Research, Springer, vol. 35(4), pages 471-490, August.
    4. Rodrigo Salvador & Murillo Vetroni Barros & Guilherme Francisco do Prado & Regina Negri Pagani & Cassiano Moro Piekarski & Antonio Carlos de Francisco, 2021. "Knowledge and technology transfer in sustainability reports: Fomenting stakeholder engagement for sustainable development," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(1), pages 251-264, January.
    5. Antonella Silvestri & Stefania Veltri, 2020. "Exploring the relationships between corporate social responsibility, leadership, and sustainable entrepreneurship theories: A conceptual framework," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(2), pages 585-594, March.
    6. Assunta Di Vaio & Luisa Varriale & Angelo Di Gregorio & Samuel Adomako, 2022. "Corporate social performance and non‐financial reporting in the cruise industry: Paving the way towards UN Agenda 2030," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(6), pages 1931-1953, November.
    7. Guillermo Badía & Fernando Gómez‐Bezares & Luis Ferruz, 2022. "Are investments in material corporate social responsibility issues a key driver of financial performance?," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(3), pages 3987-4011, September.
    8. Mercedes Hernández Esquivel & Elva Esther Vargas Martínez & Alejandro Delgado Cruz & Juan Manuel Montes Hincapié, 2021. "Sustainable Innovation: Concepts and Challenges for Tourism Organizations," Academica Turistica - Tourism and Innovation Journal, University of Primorska Press, vol. 14(2), pages 175-187.

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