The effects of technological innovation on the CSR practices of Moroccan firms: An empirical study using the ESG approach

Abstract

This article examines the relationship between technological innovation and the application of ESG (Environment, Social, and Governance) approaches. Two propositions are tested based on data from surveys of Moroccan companies conducted by the World Bank.
The first proposal suggests that there is a direct and positive relationship between the technological innovation behaviour of companies and their ESG commitment, measured using a composite score. The results of the multivariate regressions confirm the existence of a positive relationship between technological innovation and the intensity of ESG commitments, for both product and process innovation. The empirical analysis controlled for the effects of company size, managerial experience, presence of foreign investors and sectoral affiliation. The second proposition examines the direct and positive relationship between technological innovation and the implementation of one of the ESG practices. To this end, the results of the study suggest that innovative companies are more likely to implement the three ESG practices in their activities.