Corporate Social Responsibility, Innovation and Leadership: Exploring the Compatible Territories

Abstract

Purpose – The objective of this study is to provide insights into the role of leadership in promoting creativity and innovation at the level of the firm, and how these may translate into improving firms’ own context of competitiveness in their respective markets through CSR initiatives.

Method/approach – This paper employs literature study, which is descriptive in nature, to explore the relationships between leadership, creativity/innovation, and CSR. We sought to describe the relationships between the three concepts: leadership, creativity/innovation, and CSR, as practically as possible. In employing exploratory research strategy, we draw insights from extant literature, drawn from the management sciences to describe leadership, creativity/innovation and CSR in organizations. In doing so, we explore, by arguing, how leadership can stimulate creativity/innovation in employees and how firm-level innovation-directed activities can connect to CSR activities.

Findings - The model suggests that leaders can stimulate employees’ creativity/innovative behaviour and this in turn may influence the rate at which innovation manifest in the products and processes of the organization. These, in turn, may be closely related to the CSR initiatives that the organization pursues. The study has argued that for creativity/innovation to be embedded in the organization’s product and processes, leadership of organization remains a key factor in terms of either enabling or inhibiting individual employees’ innovative behaviour. Leadership of organizations and individual employees’ innovative behaviour appear to influence the nature of CSR initiatives that is undertaken and may contribute in defining organization’s own competitiveness. Organization’s CSR initiatives can connect with efforts at improving its own competitiveness through, leadership of organization and stakeholder partnerships.

Keywords: creativity; innovation; leadership; corporate social responsibility; CSR