Business Strategy and Innovative Corporate Social Responsibility
Author
Abstract
This paper applies Miles and Snow’s (2003) theoretical business strategy to investigate whether business strategy will affect a company's willingness to engage in Corporate Social Responsibility (CSR) activities and what type of CSR it prefers to engage in. This study also helps us understand the intention of doing CSR in different enterprise strategies. In addition, we discuss how engagement in CSR from different enterprise strategies affects corporate financial performance. First, we find that analyzers are more inclined to engage in CSR activities. In addition, prospectors who invest in CSR have better CSR performance and better CSR innovation performance than others. Second, we find that prospectors’ performance in return on assets is worse than the other two strategies, but if prospectors engage in CSR activities, this will increase their financial performance. Finally, we find that defenders’ CSR performance is poor, but they can improve this by engaging in innovative CSR activities.
Key Words
business strategy, corporate social responsibility, operating performance, innovation
