Corporate Social Responsibility as a Part of the Strategies for Business Sustainability Based on the Innovative Activity Development

Corporate Social Responsibility as a Part of the Strategies for Business Sustainability Based on the Innovative Activity Development

Iveta Ubrežiová (Department of Management in Poprad, Catholic University in Ružomberok, Poprad, Slovakia), Oksana Sokil (Faculty of Economics and Management, Slovak University of Agriculture in Nitra, Slovakia) and Mária Janošková (Department of Management in Poprad, Catholic University in Ružomberok, Poprad, Slovakia)
Copyright: © 2020 |Pages: 17
DOI: 10.4018/978-1-7998-4543-0.ch009
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Abstract

This chapter identifies the most effective measures of corporate social responsibility pillars that prompt the CSR implementation as an innovative tool for modern business. Differences between the respondents' education level and the level of their awareness with the concept of CSR are researched. Primary data were collected by conducting the survey in 2019; statistical analysis of data was performed using software SAS: analytics, business intelligence, and data management. The results showed that research and development in the field of environmental protection, development of qualification, skills of employees and conducting a systematic stakeholders' survey about the company's activities are the most effective measures to improve innovation through CSR. The research found that the level of education affects the level of knowledge about CSR, and the job title of the respondents has no effect on the level of CSR concept awareness. The study also provides significant recommendations for improving the level of CSR implementation that can be used by all kinds of business.
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Introduction

The interests of each company require solving strategic development problems through various tasks and issues that are related to the harsh competitive struggle that already takes place in the domestic and foreign markets. Nowadays, sustainable economic development is not determined by the availability of raw materials or markets, but an opportunity for enterprises to enter the market of highly skilled labor resources, scientific inventions and new technologies, which is impossible without the creation of an innovative model of development and principles of Corporate Social Responsibility (Bolzan, Bitencourt, & Volkmer Martins, 2019; Grydzhuk, 2008; Ubrežiová & Gurská, 2012; Ubrežiová & Horská, 2011). Previous researches show that these two concepts are extremely important for each company, as CSR and practice in the innovation sphere help to function normally in the conditions of deep, radical reformation of the economy (Grydzhuk, 2008; MacGregor & Fontrodona, 2008; Rexhepi, 2013). The main purpose of such reformation is not only the profitability of the business and the economic growth of enterprises, but, first of all, satisfying the needs of stakeholders (Voloskovets, 2010). Besides, the development of new market opportunities, marketing research, financial management, resource utilization, investment attraction, and socially responsible business awake the need to provide innovative ways of expanding (Lii & Lee, 2019; Marin, 2017; Song, 2018).

Nevertheless, the issue of combining two radically important components as an innovation activity and corporate social responsibility of entrepreneurship is still not sufficiently researched in the scientific environment (Voloskovets, 2010). The relationship between CSR and innovative activities is a new concept and, accordingly, is not sufficiently developed in the theoretical and empirical aspects (Bocquet & Mothe, 2013; Chala, 2014). This kind of research remains scarce especially in the case of small and medium-sized enterprises (Bocquet & Mothe, 2013; Jenkins, 2006; Murillo & Lozano, 2006).

The purpose of the chapter is to identify the most effective measures of three Corporate Social Responsibility pillars which are prompted the CSR implementation as an innovative tool for modern business. The research also aims to identify the relationship between the level of education/the job title of the respondent at the enterprise and the level of his/her awareness with the CSR concept. To achieve the goal, it is necessary to find out answers to the following questions:

  • RQ1. Are the CSR measures important for innovation activity development?

  • RQ2. What are the main CSR activities which help to improve the innovative activity of the enterprise?

  • RQ3. What is the level of awareness about CSR among employees working in creating innovative technologies and products area?

The second section reviews literature describing the essence of CSR and innovation, and also explains the interrelation between these two concepts. The third section represents the hypothesis of the study. The next part describes methodological issues that include research design and sample identification. The empirical results are presented and discussed in the fifth section. The last parts represent proposals for further research.

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Theoretical Background

This part of the article describes the thoughts of scientists, whose research is closely related to the concepts of innovation activity and CSR.

Key Terms in this Chapter

Research: Is defined as the creation of new knowledge and/or the use of existing knowledge in a new and creative way so as to generate new concepts, methodologies, and understandings. This could include synthesis and analysis of previous research to the extent that it leads to new and creative outcomes.

Company: A company, abbreviated as co., is a legal entity made up of an association of people, be they natural, legal, or a mixture of both, for carrying on a commercial or industrial enterprise. Company members share a common purpose, and unite to focus their various talents and organize their collectively available skills or resources to achieve specific, declared goals.

Sustainable Business: Sustainable business believes that every business can improve their economic, social, and environmental bottom line by implementing meaningful sustainability practices and programs.

Development: It means an ongoing process to achieve a better outcome in the future.

Activity: A definition is a quality or state of being active: behavior or actions of a particular kind.

Innovation: In its modern meaning is “a new idea, creative thoughts, new imaginations in the form of device or method”. Innovation is often also viewed as the application of better solutions that meet new requirements, unarticulated needs, or existing market needs.

Strategy: It is important because the resources available to achieve these goals are usually limited. Strategy generally involves setting goals, determining actions to achieve the goals, and mobilizing resources to execute the actions.

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