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