*2.2.1 The strategic CSR Pillars*

Strategic CSR conception was developed first by Burke et al. [50]. It means relating CSR to the corporate core business, the implementation of social management systems, and the setting of social targets, auditing, and reporting. In the same line, Athanasopoulou and Selsky [51] defined strategic CSR as a continuous process that takes into account its own effect. More precisely, a company can pursue its business goals while considering the stakeholders' engagement through strategic CSR [52]. Thus, the efficient implementation of CSR strategies depends on corporate activities, skills, and capabilities. While other CSR versions can have different opposite linkage with innovation depending on their strategic application, innovation enhancement is one of the strategic CSR pillars. Vishwanathan et al. [18] explained how strategic CSR enhances the firm reputation, increases stakeholder reciprocation, mitigates firm risk, and strengthen innovation capacity. These effects cannot be achieved through the non-strategic CSR.


Lins et al. [57] found that during crises trust between stakeholders and companies is built through socially responsible investment (SRI). Employees' productivity is higher for socially responsible firms and creditors have more faith in these firms' transparency. In the same line, Hasan et al. [58] concluded that social considerations of the principal stakeholders are precious especially for firms that dispose of higher

discretionary cash levels. Similarly, Govindan et al. [59] proved that CSR practices influence the suppliers' selection, which affects corporate competitiveness.


It is straightforward to notice that the enhancement of the innovation capacity influences its intensity and initiative. The other mechanisms also can affect innovation success. For instance, a better relational with different stakeholders groups helps the firm to understand their desire and expectations and generates more innovation opportunities. In a similar stream, Porter and Kramer [14] underlined that strategic CSR is a source of innovation and competitive advantage creation. Its effect on innovation can be more pronounced when the company improves its CSR process, which in turn drives social innovation [66]. One of the examples that can show how strategic CSR fosters innovation is Denmark's biggest energy company Orsted. In 2012 and after the financial crisis the price of natural gas was dropping by 90%. To face these circumstances, Oersted's board hired as a new CEO Henrik Poulsen a former executive at LEGO. While several companies adopted crisis management strategies to overcome the situation, Poulsen detected the opportunity and need for crucial change. The company at this level switched based on their new innovative responsible strategy from black energy to the green one. It was a radical transformation with the new core business, new management methods and new process that grants sustainable growth.

Similarly, Ecolab was a company that sells food safety services and cleaners with a modest growth level, around 10% annually in the early 2000s. When Douglas M. Baker Jr. became the CEO in 2004 he felt that moving to the adjacent markets will not provide the desired growth. In line with Bocquet et al. [9], strategic CSR has to understand and consider the stakeholders while making strategies. Ecolab started its transformation by asking customers among others to understand the real needs and what is really lacking in the market. Through this understanding and collaboration with Nalco Company, Ecolab was able to present new products and cover \$12 billion market cap in 2011.

These examples not only reflect the strong positive association between the strategic CSR and the innovation but also reveal the vital role of the managerial characteristics of this relation.
