CSR and market changing product innovations: Indian case studies

Do firms need to sacrifice profit while innovating in order to further social objectives, as corporate social responsibility (CSR) would seem to suggest? To answer this question, the paper compiles a classification of innovations according to market impact and CSR potential. Then it details case studies of two market changing (MC) innovations in India: genetically modified cotton of Monsanto and a drugs cocktail for HIV/AIDS of Cipla. It demonstrates that the CSR potential of an MC innovation can directly serve to increase profits and augment bargaining power in conflicts if it is supported by a robust business model.

Keywords: CSR, Monsanto, CIPLA, Innovation.

JEL Codes: M14, O32

UNU-MERIT Working Papers ISSN 1871-9872