Abstract Firm innovation and corporate social responsibility (CSR) are key strategic considerations that shape a firm's competitiveness and sustainability. However, studies exploring the relationship between the two are heterogeneous and sometimes obtain contradictory results, making it difficult to draw clear conclusions. This systematic literature review addresses this gap by examining 72 peer‐reviewed studies spanning 2000–2024 to assess the type of relationship (direct, indirect, other), direction (causality), sign (positive/negative), and statistical significance of the innovation‐CSR relationship. The results generally support a positive relationship – especially from CSR to firm innovation‐ although the outcomes vary depending on measurement approach, sector, geographical context, and period. Beyond direct effects, we identify more complex dynamics, notably mediation/moderation processes, which can involve both firm innovation and CSR. Academically, this study clarifies theoretical trends, highlights underexplored frameworks, and contributes methodologically by applying the Scientific Procedures and Rationales for Systematic Literature Review protocol and the theories‐contexts‐methods framework, which could enrich future research. For managers, we offer guidance with regard to leveraging CSR to foster innovation and in turn improve firm performance. For policymakers, our findings can inform designing frameworks to stimulate sustainable business practices. Finally, for society at large, this study can contribute to aligning corporate behavior with social and environmental objectives.
Alonso‐Martínez et al. (Fri,) studied this question.
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