Corporate social innovation refers to the fact that it is not enough for companies to simply make profits for their shareholders, but that they must also ensure they are operating in a socially responsible manner as they do so. This has led to the idea of ‘shared value’ where, ideally, all involved in a company’s activities receive a share of the value of the goods or services produced.
Reasons that companies engage in social innovation include:
• The growing complexity and fast rate of change in today’s business environment that demands a new role for business.
• Increased demands for transparency and accountability from consumers.
• Social media and other media can highlight unfair practices and create negative perceptions of a company’s brand.
• Employees seek meaning and purpose from their work and don’t want to be associated with a company that is having a negative effect on others in its business activities.