CSR and Innovation: Anchoring Sustainability in Henkel’s Innovation Process

The term CSR—and expectations for how companies address their social responsibility—is often understood in a superficial and overly-simplified way. In many instances, it is used as a synonym for voluntary “citizenship” projects outside of core business activities. Other interpretations suggest that CSR simply involves adherence to minimum requirements for moral and ethical behavior, such as the 10 principles of the United Nations Global Compact. Similarly, the discussion of CSR is dominated by standards, certifications and reporting requirements, although these only provide a framework for business activities. The full breadth of topics and considerations that the term CSR covers is much more comprehensive, as illustrated by the United Nations Sustainable Development Goals: These 17 goals and 169 targets provide a common understanding and a shared focus on the challenges and opportunities that need to be addressed in order to drive progress toward sustainable development. CSR offers diverse opportunities for first-movers to open up new markets and gain a competitive advantage by leading progress toward sustainable development. For companies aiming to seize this advantage, innovative products, processes and business models play a decisive role.