This paper seeks to explore the interplay between corporate social responsibility and innovation and questions the premise, often underlying EU communications, that the two agendas are in general mutually supportive. In order to accommodate a closer fit the paper argues for a dynamic reinterpretation of CSR.
This is a conceptual paper that presents discussions and conclusions at the theoretical level. It provides a brief overview of core parts of the CSR and the innovation literature and then analyses how the perspectives on the firm in these two literatures fit together. The final section raises normative and theoretical issues with respect to innovation and CSR.
The paper documents the difficulties of assuming that innovation policy and CR policy can easily be mutually supportive. While the assumption of compatibility and synergy may be reasonable for some types of innovation, and some types of CR, it can hardly be argued on a general basis. A core finding is the need to differentiate between complementary static and dynamic views. While much of the innovation literature is dynamic in its nature, much of the CR literature has traditionally been given a static interpretation.
The original value of the paper is that it highlights inconsistencies in the dominant static interpretation of CSR with important sides of the innovation economy. It also shows the way towards a more dynamic interpretation, but then also recognizing some of the important limits of CSR, even in a dynamic mode, calling for engagement from the state in certain types of industrial restructuration.
