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Corporate social responsibility and eco‐innovation: The triple bottom line perspective

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  • Xin Pan
  • Paresha Sinha
  • Xuanjin Chen

Abstract

This article investigates the role of corporate social responsibility (CSR) in eco‐innovation from the triple bottom line perspective. We unpack CSR into three dimensions (financial, social, and environmental) and categorise eco‐innovation into two kinds (pollution prevention and sustainable environmental innovation) to get a comprehensive picture of the relationship. Drawing on the resource‐based view, we suggest that the environmental dimension of CSR is positively related to pollution prevention because the returns on this kind of innovation are more predictable and straightforward, which appeals to firms. We also suggest that there is a U‐shaped relationship between the environmental dimension of CSR and sustainable environmental innovation, as this kind of innovation can only be realised when environmental commitments are high. Moreover, we expect the social and financial dimensions of CSR to interact with the environmental dimension to affect eco‐innovation. Using Chinese firm data from 2011 to 2015, we find that the social and financial dimensions of CSR have a positive moderating effect on sustainable environmental innovation. However, we fail to find support for their moderating effect on pollution prevention. Theoretical and practical implications, based on the findings, are discussed.

Suggested Citation

  • Xin Pan & Paresha Sinha & Xuanjin Chen, 2021. "Corporate social responsibility and eco‐innovation: The triple bottom line perspective," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(1), pages 214-228, January.
    • Handle: RePEc:wly:corsem:v:28:y:2021:i:1:p:214-228
    DOI: 10.1002/csr.2043
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    3. Larbi-Siaw, Otu & Xuhua, Hu & Owusu, Ebenezer & Owusu-Agyeman, Abigail & Fulgence, Brou Ettien & Frimpong, Samuel Akwasi, 2022. "Eco-innovation, sustainable business performance and market turbulence moderation in emerging economies," Technology in Society, Elsevier, vol. 68(C).
    4. Ana León-Gómez & José Manuel Santos-Jaén & Daniel Ruiz-Palomo & Mercedes Palacios-Manzano, 2022. "Disentangling the impact of ICT adoption on SMEs performance: the mediating roles of corporate social responsibility and innovation," Oeconomia Copernicana, Institute of Economic Research, vol. 13(3), pages 831-866, September.
    5. Anna Chwiłkowska-Kubala & Szymon Cyfert & Kamila Malewska & Katarzyna Mierzejewska & Witold Szumowski, 2021. "The Relationships among Social, Environmental, Economic CSR Practices and Digitalization in Polish Energy Companies," Energies, MDPI, vol. 14(22), pages 1-20, November.
    6. Suyun Chen & Yu Ji, 2022. "Do Corporate Social Responsibility Categories Distinctly Influence Innovation? A Resource-Based Theory Perspective," Sustainability, MDPI, vol. 14(6), pages 1-25, March.

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