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Corporate Social Responsibility and the Willingness to Eco-Innovate among Chilean Firms

Author

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  • Luis E. Villegas

    (Departamento de Economía y Finanzas, Universidad del Bío-Bío, Avenida Collao 1202, Concepción 4051381, Chile)

  • Andrés A. Acuña-Duarte

    (Departamento de Economía y Finanzas, Universidad del Bío-Bío, Avenida Collao 1202, Concepción 4051381, Chile)

  • César A. Salazar

    (Departamento de Gestión Empresarial, Universidad del Bío-Bío, Avenida Andrés Bello 720, Chillán 3810189, Chile
    NENRE EfD-Chile Center, Victoria 471, Concepción 4070374, Chile)

Abstract

Adopting social responsibility can be a key strategy for firms to mitigate the impact of production on the environment, contributing to a more sustainable business model. Based on the triple bottom line perspective, we analyze the effect of Corporate Social Responsibility (CSR) on the willingness to allocate resources to eco-innovation among companies in a developing country. Firm-level data from the Fifth Longitudinal Survey of Chilean Firms are used to estimate a binary probit model for the willingness to eco-innovate and a Heckman sample-selection model for total expenditures and investment in eco-innovation. Results confirm that legal regulations and R&D efforts are drivers of eco-innovation among Chilean firms. Larger-sized and export-oriented firms also exhibit a higher willingness to eco-innovate. The main findings show a positive influence of CSR policy on the willingness to eco-innovate and on the resulting resource allocation decision. Interestingly, the evidence reveals that while financial and environmental CSR dimensions only affect the probability of adopting eco-innovation, the social CSR dimension also increases the amount firms spend on eco-innovation. This result suggests that social CSR may act as a complement to other CSR dimensions. These results are robust when controlling for firm-level specific effects under sample-selection models.

Suggested Citation

  • Luis E. Villegas & Andrés A. Acuña-Duarte & César A. Salazar, 2023. "Corporate Social Responsibility and the Willingness to Eco-Innovate among Chilean Firms," Sustainability, MDPI, vol. 15(12), pages 1-19, June.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:12:p:9832-:d:1175284
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    1. Nosheen Fatma & Abid Haleem, 2023. "Exploring the Nexus of Eco-Innovation and Sustainable Development: A Bibliometric Review and Analysis," Sustainability, MDPI, vol. 15(16), pages 1-21, August.

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