Despite the popularity of both innovation management and CSR most companies do not necessarily connect them and manage them strategically. We lack a broader holistic perspective on the complex connection between innovation and CSR. In other words, we do not have a strategic and generic business model connecting innovation and CSR, through which innovation practices can create business value and positive societal and environmental change. The disconnectedness of these two aspects of corporate activities may lead to missed business opportunities, avoidable financial losses for a company in the long run, as well as negative economic, societal and environmental impacts. Therefore, the challenge is to innovate in a responsible way. An effective strategic approach to responsible corporate innovation would have sustainable outcomes for both business and society. I argue that intertwining innovation and CSR may bring opportunities for both business and society. In order to bring sustainable economic, societal and environmental outcomes, companies should have a strategic approach to innovation and CSR management.
This chapter places the assessment of responsible innovation (including measuring, monitoring and reporting) in a broader picture of a business strategy. This analysis is crucial to understand why, when and how the evaluation and control of responsible innovation should be done in order to mitigate risks and strengthen strategic planning.