Business Ethics Quarterly 24 (1):1-30 (2014)
Abstract |
ABSTRACT:The link between firm corporate social performance and executive compensation could be driven by a sorting effect, or by an incentive effect. Existing empirical work focuses exclusively on the incentive effect. In contrast, in this paper we explore the sorting effect of firm CSP on the initial compensation of newly hired executives. In doing so, we develop a novel theoretical approach based on an integration of stakeholder theory and human capital theory, suggesting a positive association between the initial compensation of executives and firm CSP strengths and concerns. It also suggests that the strength of this relationship varies between different executive roles. We find support for this theoretical framework in a large sample of newly-hired executives employed by Standard & Poor 1500 firms.
|
Keywords | No keywords specified (fix it) |
Categories | (categorize this paper) |
DOI | 10.5840/beq2014254 |
Options |
![]() ![]() ![]() ![]() |
Download options
References found in this work BETA
Value Maximization, Stakeholder Theory, and the Corporate Objective Function.Michael C. Jensen - 2002 - Business Ethics Quarterly 12 (2):235-256.
Corporate Social Performance as a Competitive Advantage in Attracting a Quality Workforce.Daniel W. Greening & Daniel B. Turban - 2000 - Business and Society 39 (3):254-280.
Stakeholder Theory, Value, and Firm Performance.Jeffrey S. Harrison & Andrew C. Wicks - 2013 - Business Ethics Quarterly 23 (1):97-124.
Measurement of Corporate Social Action Discovering Taxonomy in the Kinder Lydenburg Domini Ratings Data.James E. Mattingly & Shawn L. Berman - 2006 - Business and Society 45 (1):20-46.
Dialogue: Toward Superior Stakeholder Theory.Bradley R. Agle, Thomas Donaldson & R. Edward Freeman - 2008 - Business Ethics Quarterly 18 (2):153-190.
View all 11 references / Add more references
Citations of this work BETA
Mitigating Stakeholder Marginalisation with the Relational Self.Krista Bondy & Aurelie Charles - 2020 - Journal of Business Ethics 165 (1):67-82.
Past Trends and Future Directions in Business Ethics and Corporate Responsibility Scholarship.Denis G. Arnold, Kenneth E. Goodpaster & Gary R. Weaver - 2015 - Business Ethics Quarterly 25 (4):v-xv.
A New Understanding of Marketing and “Doing Good”: Marketing’s Power in the TMT and Corporate Social Responsibility.Wenbin Sun & Rahul Govind - 2022 - Journal of Business Ethics 176 (1):89-109.
Similar books and articles
Stakeholder Social Capital: A New Approach to Stakeholder Theory.Elisabet Garriga Cots - 2011 - Business Ethics, the Environment and Responsibility 20 (4):328-341.
How Economic Incentives May Destroy Social, Ecological and Existential Values: The Case of Executive Compensation.Knut J. Ims, Lars Jacob Tynes Pedersen & Laszlo Zsolnai - 2014 - Journal of Business Ethics 123 (2):1-8.
Executive Compensation and Earnings Persistence.Allan S. Ashley & Simon S. M. Yang - 2004 - Journal of Business Ethics 50 (4):369-382.
A Moral and Economic Defense of Executive Compensation.John Dobson - 2011 - Business and Professional Ethics Journal 30 (1-2):59-70.
Vice or Virtue? The Impact of Corporate Social Responsibility on Executive Compensation.Ye Cai, Hoje Jo & Carrie Pan - 2011 - Journal of Business Ethics 104 (2):159-173.
Deconstructing the Relationship Between Corporate Social and Financial Performance.Francesco Perrini, Angeloantonio Russo, Antonio Tencati & Clodia Vurro - 2011 - Journal of Business Ethics 102 (S1):59-76.
CEO Incentives and Corporate Social Performance.Jean McGuire, Sandra Dow & Kamal Argheyd - 2003 - Journal of Business Ethics 45 (4):341 - 359.
Do Corporate Social Performance Targets in Executive Compensation Contribute to Corporate Social Performance?Karen Maas - 2018 - Journal of Business Ethics 148 (3):573-585.
In Search of Stakeholder Salience: Exploring Corporate Social and Sustainability Reports.James Weber & Kathryn Marley - 2012 - Business and Society 51 (4):626-649.
The Role of Board Chair in the Relationship Between Board Human Capital and Firm Performance.Carol Yeh-Yun Lin, Yu-Chen Wei & Ming-Hsueh Chen - 2006 - International Journal of Business Governance and Ethics 2 (s 3-4):329-340.
An Empirical Investigation of the Relationship Between Change in Corporate Social Performance and Financial Performance: A Stakeholder Theory Perspective. [REVIEW]Bernadette M. Ruf, Krishnamurty Muralidhar, Robert M. Brown, Jay J. Janney & Karen Paul - 2001 - Journal of Business Ethics 32 (2):143 - 156.
How Much Compensation Can CEOs Permissibly Accept?Jeffrey Moriarty - 2009 - Business Ethics Quarterly 19 (2):235-250.
An Ethical Perspective on CEO Compensation.Mel Perel - 2003 - Journal of Business Ethics 48 (4):381-391.
Stakeholder Theory, Value, and Firm Performance.Jeffrey S. Harrison & Andrew C. Wicks - 2013 - Business Ethics Quarterly 23 (1):97-124.
A Stakeholder Perspective of Entrepreneurial Activity.Jeffrey S. Harrison - 2002 - The Ruffin Series of the Society for Business Ethics 2002:143-150.
Analytics
Added to PP index
2014-02-16
Total views
33 ( #345,560 of 2,506,156 )
Recent downloads (6 months)
2 ( #277,380 of 2,506,156 )
2014-02-16
Total views
33 ( #345,560 of 2,506,156 )
Recent downloads (6 months)
2 ( #277,380 of 2,506,156 )
How can I increase my downloads?
Downloads