Navigating Innovation and Corporate Social Responsibility in the Natural and Organic Personal Care Industry: Barriers and Opportunities

This study investigates the economic, political, and organisational factors influencing innovation in the natural and organic personal care industry. A multiple case study approach was adopted to gain an in-depth understanding of participants’ experiences, motivations, and challenges in this sector. A total of seven participants were interviewed, representing a cross-section of job roles and company characteristics within the Sri Lankan personal care and beauty industry. The sample was purposive, with participants selected based on their expertise in the field and their company’s focus on natural and organic products. Four major themes that emerged from the findings are as follows: (1) Economic and Political Trends Affecting SME Innovation, (2) Decision-Making, (3) Factors for Innovation, and (4) Barriers to Product Development and Innovation. The findings reveal the barriers companies face in aligning innovation with sustainability goals, including economic pressures, regulatory challenges, and organisational constraints. Drawing from the findings key propositions are suggested, offering insights into how SMEs in the natural and organic personal care industry can effectively navigate innovation and corporate social responsibility (CSR). These propositions highlight the role of policy advocacy, strategic decision-making, customer engagement, and alternative financing in overcoming barriers to sustainable development. By providing a roadmap for future research and practical applications, these propositions emphasise the importance of aligning innovation with CSR to drive long-term success and responsible leadership in the industry.