The Effect of Innovative Corporate Social Responsibility in Supply Chain Management on Firm Performance

In order to enhance business firm performance (FP) and foster sustainability, Innovative Corporate Social Responsibility (ICSR), characterized by CSR driven by innovation, is currently under development and implementation in Supply Chain Management (SCM). The aim of this study is to investigate the trend of ICSR in SCM and its effects on FP across economic, social, environmental, and competitive dimensions. A systematic review revealed a consistent upward trend in the incidence of ICSR. Green Innovation (GI), Logistics Innovation (LI), and Sustainable Business Model Innovation (SBMI) emerge as the three most frequently employed ICSRs in SCM. GI is utilized for procuring goods and services, including the development of new eco-friendly products that attract clients and enable the firm to expand its market share. Furthermore, the incorporation of energy-efficient production technology is employed to reduce production costs. LI is employed for creating transportable objects and packaging, as well as for managing reverse logistics and reducing inventory costs through zero inventory management. Additionally, employing SBMI for crafting a business plan can contribute to enhancing the quality of life for clients. It also serves as an initiative to eliminate carbon emissions, demonstrating a commitment to addressing environmental and social concerns. This article recommends the application of ICSR to SCM for businesses aiming to improve FP over the long term.