Corporate social responsibility and corporate innovation efficiency: evidence from China

Purpose This study aims to analyse the impact of corporate social responsibility (CSR) on corporate innovation efficiency and the mechanism underlying this effect. Design/methodology/approach Data of non-financial listed companies operating in China from 2010 to 2019 were employed. Dual fixed-effects and dynamic panel models were used to explore the relationship between CSR and corporate innovation efficiency, and analyse its heterogeneity. Findings The researchers found that CSR reduces innovation efficiency in China. Further, (1) when enterprises conduct CSR to obtain excess returns, it is easy to form excess goodwill; (2) under the pressure of the government and society, enterprises passively assume CSR, thereby crowding out R&D funds; and (3) regardless of whether companies in the high-tech industry actively or passively assume social responsibilities, CSR will not have a significant impact on their innovation efficiency. Research limitations/implications The sample of this research is limited to Chinese A-share listed companies and lacks consideration for small and medium-sized enterprises. Therefore, whether the conclusions of this article are applicable to small and medium-sized enterprises or family enterprises needs further verification. Practical implications The research explores the intrinsic motivation and possible consequences of CSR from the dual perspectives of corporate active and passive. Social implications The ultimate goal of a firm is to make a profit. In practice, few enterprises pay without any return. Perhaps some companies actively assume social responsibilities in order to obtain greater benefits, while passively assume social responsibilities due to oppression. Originality/value This study analyses the impact of CSR on corporate innovation efficiency from both active and passive perspectives. The results have important implications for government officials and entrepreneurs.