Confucian ethical leadership, social-environmental CSR, and innovation in China: Transforming virtues into strategic value

Abstract

This study examines how Confucian ethical leadership—grounded in the virtues of ren (benevolence), yi (righteousness), and he (harmony)—shapes corporate innovation in China, with social-environmental corporate social responsibility (CSR) as a strategic mediator. Data were collected from 151 case samples of Confucian-oriented firms in China using a case survey method, and hierarchical regression analysis was employed for hypothesis testing. Confucian ethical leadership directly enhance corporate innovation and social-environmental CSR, while social-environmental CSR partially mediates the ethics-innovation relationship. The results highlight the dual role of Confucian ethics in driving both social-environmental CSR and innovation, demonstrating social-environmental CSR as a relational infrastructure for translating ethical governance into innovation outcomes. This research highlights the practical benefits of integrating Confucian ethics into corporate management for Chinese business leaders. By fostering harmonious stakeholder relationships and prioritizing social-environmental CSR, leaders can enhance corporate innovation and secure a competitive edge in today’s dynamic global markets. The companies and educational institutions should incorporate Confucian ethics into executive training curricula to cultivate future leaders.