The impact of green innovation on corporate social behaviour: longitudinal analysing of the mixed effects on stakeholder relationships

Purpose Considering the growing emphasis on sustainability, companies are developing green innovation strategies for creating new products and processes that reduce environmental effects. The impact of green innovation on firm performance is well established in the literature; however, the relationship between a firm’s adoption of green innovation and its social behaviour has not yet been explored. This study aimed to fill this gap by analysing the impact of green innovation on companies’ social behaviour, at both the overall and sub-dimensions levels. Design/methodology/approach This study was conducted on a sample of 191 companies worldwide between 2016 and 2019. Company data were extracted from the Joint Research Centre database established by the European Commission and the Organisation for Economic Cooperation and Development. In contrast, data on corporate social behaviour was taken from the LSEG Workspace database. We applied a panel regression using a fixed effects model to test the research hypotheses. Findings The results support the positive impact of green innovations on corporate social behaviour in the immediate and subsequent periods. However, the empirical results do not provide significant evidence for some dimensions of corporate social behaviour, such as respect for human rights and product responsibility. Originality/value The study’s novelty lies in its emphasis on how green innovation shapes corporate social behaviour and enhances stakeholder relationships. Green innovation is introduced as a strategic instrument for meeting social duties and increasing trust, loyalty and ethical engagement with important stakeholders.