The Relationship between Firm Innovation and Corporate Social Responsibility

Firm innovation creates an informational asymmetry between the firm and outside stakeholders. Since CSR activities have been shown to reduce asymmetries and risk we surmise that firms use discretionary CSR activities to reduce the asymmetries from innovation. We study an innovation intense industry...

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Bibliographic Details
Published in:Business & professional ethics journal 2019-07, Vol.38 (2), p.137-146
Main Authors: Berry, Thomas D., Wagner, Erica
Format: Article
Language:English
Subjects:
Innovations
R&D
Research & development
Social responsibility
Studies
Online Access:Get full text
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Summary:Firm innovation creates an informational asymmetry between the firm and outside stakeholders. Since CSR activities have been shown to reduce asymmetries and risk we surmise that firms use discretionary CSR activities to reduce the asymmetries from innovation. We study an innovation intense industry (technology) and find results that support the hypothesis that firms use CSR to signal long term viability of innovative activities.
ISSN:0277-2027
2153-7828
DOI:10.5840/bpej201942578