Transforming CSR initiatives through AI applications: The Strategic Applications in the European Manufacturing Sector

Abstract

This research investigates how large European manufacturing companies adopt Artificial Intelligence (AI) in their Corporate Social Responsibility (CSR) initiatives. The existing literature has studied CSR frameworks and the applications of AI in different contexts, but few studies analyzed the intersection between these two topics and how they are integrated in the manufacturing sector. To address this gap, this study adopts a qualitative research design, in particular by conducting interviews with six European large manufacturing companies in the fashion industry. From the findings it emerged that AI applications are increasingly utilized among manufacturing companies to increase the CSR performance, especially in energy efficiency, waste reduction and supply chain transparency. The main AI tools utilized are machine learning, predictive analytics and computer vision. Another important aspect regards the stakeholder influence that represented an important driver for the utilization of AI in CSR initiatives, but most of the firms also approached this strategy to align with internal sustainability goals. The analysis is based on three main theoretical frameworks: the Resource-Based View (RBV), Stakeholder Theory and Strategic CSR. Through the application of these theories, it emerged also that the integration of AI applications in CSR initiatives contributed both to sustainability outcomes and operational value, transforming sustainable initiatives from compliance driven functions into strategic capabilities. Technical and Organizational challenges were faced by the companies during the implementation, but they were solved through targeted investments and collaborative approaches. This research contributes to the academic discourse on AI and CSR by offering real insights from large European manufacturing companies into how they use specific AI applications to operationalize sustainability. Also practical recommendations for business leaders and policymakers are provided to support a proper AI adoption in CSR strategies.