Corporate social innovation refers to the concept of organizations integrating social and environmental principles in their operation. These innovations seek to achieve a balance between economic, profit-driven aims and environmental and social concerns and addressing the needs of shareholders and other stakeholders.
Social innovation is not focused on charity or philanthropy, rather it seeks to apply innovation management concepts to achieving social goods in the course of the organizations normal function. This innovation needs to be structured in such a way that it does not adversely affect the organization’s economic viability. It involves environmental management and ecologically sound practices while remaining financially viable and minimizing its environmental impacts as well as meeting social expectations. A properly implemented social innovation program can also provide an organization with significant competitive advantage, access to ecologically aware capital resources and enhanced customer awareness and loyalty.