CSR innovation and CSR altruism – A model of firm classification

The relational construct between corporate social responsibility (CSR) altruism and CSR innovation has been under-studied in the literature. By examining firms’ innovation practices and CSR altruism level, this study introduces a conceptual model for categorizing firms. The study proposes that firms can be divided into four groups (trendsetters, strategists, copycats, and actors) based on their level of CSR altruism and innovation practices. The theoretical underpinning of the model is based on stakeholder and institutional theories. The proposed model suggests that firms have diverse perspectives on CSR innovation. Some firms perceive it as a means to enhance profits, some question its significance, and some emulate others by following emerging CSR trends. The model is anticipated to offer insights into the conflicting evidence found in the CSR and innovation literature and encourage further empirical investigation. Additionally, policymakers can acknowledge firms' underlying innovation and CSR motivation within each category.