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.
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| DOI | 10.5840/beq2014254 |
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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.
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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.
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2014-02-16
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