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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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
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container_title Business & professional ethics journal
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creator Berry, Thomas D.
Wagner, Erica
description 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.
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ispartof Business & professional ethics journal, 2019-07, Vol.38 (2), p.137-146
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subjects Innovations
R&D
Research & development
Social responsibility
Studies
title The Relationship between Firm Innovation and Corporate Social Responsibility
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