Corporate Social Responsibility and Firm Performances: bridging innovation and financial outcomes to stakeholder theory

This thesis aims to investigate if and how the attention towards stakeholder groups affects ability and strategy of firms and corporates on innovation and performances. The framework of the Stakeholder Theory is assumed as reference for the origin and concept of Corporate Social Responsibility. On this basis, specific attention is dedicated to empirical studies on a database created by the research group at the University of Genoa in cooperation with the Italian Ministry of Economic Development. The data of the firms are analysed by means of clustering techniques and bivariate probit model Results offer implications from both theoretical and practical points of views. In particular, the links between practices in Corporate Social Responsibility and corporate innovation are empirically confirmed and economically addressed, also putting into evidence how commitment in Corporate Social Responsibility initiatives increase the probability to innovate in product and in process. The results outlined in the thesis show that a holistic approach towards Corporate Social Responsibility is the key factor in order to the achieve effective performance of innovation and to foster product and process innovations. Firms are expected to implement Corporate Social Responsibility practices in all Corporate Social Responsibility areas, without neglecting any stakeholder and, in the ideal situation, the innovation outcomes and the firm performances results closely linked to the ability of firms to anticipate and meet the stakeholder needs. Finally, beside the insights to corporate strategies, the thesis offers a methodology to support banks in the calculation of default probability of firms by exploiting the positive inter-linkage between Corporate Social Responsibility and finance and risk. Based on Basel Standards and including fields monitored through Corporate Social Responsibility indicators, the proposed approach allows understanding of corporates’ capabilities to create value and demonstrate low risk of claims, fines and default.