If a company is to remain competitive in the face of enormous socio-ecological challenges, it needs to be innovative. Achieving sustainable, innovative products and processes requires recognizing the opportunities offered by such issues as climate and demographic change. One of management’s central tasks is to create a culture of innovation and a willingness to consider unexpected ideas. New products and processes offer a key to successful social engagement in other countries.

There are three distinct types of innovation in the field of CSR that offer companies added value and a competitive advantage:

• Innovative operational processes:
  Changing over to videoconferences to eliminate unnecessary travel and thus reduce the company’s carbon footprint.

• Innovative products and services:
  Developing new products, such as more environmentally friendly models (e.g. Toyota’s hybrid vehicle).
• Opening up new or underserved markets and introducing new business models:
  Introducing smaller packaging units and innovative distribution channels (e.g. traveling merchants can sell goods to customers in rural areas that lack a retail infrastructure).

In order to bring about solution- and need-oriented innovation, it is helpful to bring in local stakeholders who are familiar with local challenges, such as employees, customers, development organizations like GTZ, or NGOs.