24 Jul “Good” Companies Launch More New Products
The World Business Council for Sustainable Development published a comprehensive report of numerous surveys and case studies which made the argument that companies that were good corporate citizens attract better talent and have employees who are more motivated, loyal, and innovative.
A HBR study of 128 firms has shown a relationship between corporate social responsibility programs and the number of new products introduced. It seems that companies in the top third in terms of CSR activities brought out, on average, 47 new products a year, while companies in the bottom third brought out only 12.
What accounts for this effect? The authors believe that CSR strengthens relationships with external stakeholders, including customers, suppliers, nonprofits, and governments, and so provides access to a wide body of knowledge. This “market intelligence” helps the company stay abreast of evolving market preferences and new technologies and fosters “creative leaps.”