CEO compensation has received much attention from both academics and regulators. However, academics have given scant attention to understanding judgments about CEO compensation by third parties such as investors. Our study contributes to the ethics literature on CEO compensation by examining whether judgments about CEO compensation are influenced by two aspects of a company’s tone at the top—social ties between the CEO and members of the Executive Compensation Committee and the CEO’s Reputation, particularly for financial reporting and disclosures. (...) Although, stock exchanges such as NASDAQ require ECC members to be independent, CEOs still may have social connections to the ECC. In addition, CEOs develop a reputation for the quality of their company’s financial reporting and disclosures. We expect both CEO Social Ties and CEO Reputation to impact say-on-pay judgments, and that fairness perceptions about the CEO compensation will mediate the relationship. We conduct an experiment to test our hypotheses. In this study, we employ a two by two experimental design where we manipulate CEO Social Ties with members of the ECC and CEO Reputation for the quality of financial reporting disclosures . Participants were MBA students who provided a say-on-pay judgment , and judgments about the fairness of the CEO’s compensation. Results indicate that CEO Social Ties affected participants’ say-on-pay judgments, which were fully mediated by their perceptions about fairness of the CEO’s compensation. Further, the CEO’s Reputation also affected participants’ say-on-pay judgments, which were fully mediated by their perceptions about fairness of the CEO’s compensation. Implications for research and public policy are presented. (shrink)

Achieving sustainability as a firm outcome is increasingly a concern for CEOs. Attention breadth (executive attention where attention is focused on a variety of areas simultaneously) is an important capability for CEOs to have in order to achieve sustainability performance at the firm level, as sustainability requires attending to multiple areas simultaneously including environmental, social, and governance dimensions as well as financial performance. To further explicate the development of attention breadth, I explore the two socio-cognitive antecedents of attention breadth—career (...) experience and social ties. Additionally, I examine the impact of CEO attention breadth on sustainability performance. A content analysis of letters to shareholders from a sample of Fortune 500 firms together with other archival data show an indirect influence of career experience and social ties on sustainability performance through the mediator of attention breadth. In particular, the number of social ties is shown to have more influence than career experience in determining the level of attention breadth, which I argue and show, ultimately leads to improved sustainability performance represented by a broader and more complex set of firm outcomes. The findings shed light on the antecedents of sustainability performance and expand the understanding of executive attention. (shrink)

This paper provides a systematic analysis of how hometown ties, the most common and distinct bases for interpersonal ties to build upon in China, could influence corporate governance in Chinese corporations by focusing on its impact on CEO dismissals and corporate social responsibility. We find that hometown ties between CEOs and board chairs reduce the likelihood of CEO dismissals and that the negative relationship between firm performance and CEO dismissals is weaker for hometown-connected CEOs in locally (...) administered state-owned enterprises, for inside CEOs, for firms located outside board chairs’ hometowns, and for firms operating in regions with low social trust. Moreover, we find consistent evidence that hometown ties affect Chinese firms’ engagement in corporate social responsibility. Our study highlights the important role of hometown ties in Chinese relationship-based corporate governance. It also advances a normative ethical assessment of hometown-based favoritism by highlighting its distinct dynamics and impacts on focal actors and the third parties in specific contexts of actions. (shrink)

This paper examines whether independent directors who have social ties to management (inside directors) can effectively perform their fiduciary duty to monitor management on behalf of shareholders. Ex ante, it is not clear whether social ties will enhance or obstruct the quality of board performance. Theory suggests that directors who are socially tied to management are ineffective and would make decisions favoring management. However, social ties can increase trust and information sharing between management and (...) independent directors, improving directors' ability and effectiveness in governing the company (Westphal, J. D.: 1999, The Academy of Management Journal 42(1), 7-24). To examine these contradicting predictions I use social network analysis and construct proxies for social ties between management and independent board members. Using these proxies, I first demonstrate that social ties are associated with higher managerial compensation. Further analyses reveal that these results are driven by social ties that include members of the compensation committee. Conversely, I demonstrate that financial reporting quality is improved when social ties exist. Specifically, I find that the likelihood of material weaknesses in internal controls and the likelihood of financial restatements are lower in companies with social ties. I further observe that this improved quality of financial reporting holds only when social ties include members of the audit committee. I conclude that ethically, socially tied independent directors should disqualify themselves from serving on compensation committees where social independence is essential. However, in tasks where collaboration with management is essential, directors with social links to each other can be of added value to shareholders. (shrink)

This study examines the impact of the Chief Executive Officer ’s interlocking, created through serving on other companies’ audit committees and/or boards, on corporate social responsibility performance of the focal company and that of its linked companies. We find that CEO interlocking positively affects CSR performance of both the focal company and its linked companies. Further analysis shows that interlocks created by the CEO enhance CSR performance and in turn the financial performance of both the focal company and its (...) linked companies. Our findings are robust to a battery of analyses, including Heckman’s selection bias correction, propensity score matching, alternative measures of CSR performance, and CEO interlocks. These findings are important to regulators, company management teams, and other stakeholders with an interest in how the social ties of CEOs influence companies’ CSR performance and in the CSR–financial performance nexus. (shrink)

The history of twentieth-century American psychology is often depicted as a history of the rise and fall of behaviorism. Although historians disagree about the theoretical and social factors that have contributed to the development of experimental psychology, there is widespread consensus about the growing and declining influence of behaviorism between approximately 1920 and 1970. Since such wide-scope claims about the development of American psychology are typically based on small and unrepresentative samples of historical data, however, the question rises to (...) what extent the received view is justified. This paper aims to answer this question in two ways. First, we use advanced scientometric tools to quantitatively analyze the metadata of 119.278 papers published in American journals between 1920 and 1970. We reconstruct the development and structure of American psychology using co-citation and co-occurrence networks and argue that the standard story needs reappraising. Second, we argue that the question whether behaviorism was the ‘dominant’ school of American psychology is historically misleading to begin with. Using the results of our bibliometric analyses, we argue that questions about the development of American psychology deserve more fine-grained answers. (shrink)

After the three families divided up the state of Jin and the Tian family took over Qi, the political situation in the fourth century B.C.E. appeared even more chaotic. Wei conquered Chu's Luyang and Qin's Xihe, Qin defeated Wei at Shimen , and again at Shaoliang , and Wei moved its capital to Daliang. During the mid-Warring States period, Qin became dominant in the west, Qi in the east, Chu in the south, and Wei in the center. Rapid changes occurred (...) one after another; trickery and conflict were rampant. However, the shi , the intelligentsia, actually managed to expand their spheres of existence and activity accordingly in this state of tension between countries, states, and men. A few major states assembled quite a number of literati; and those men of the villages, who had in earlier times merely waited passively for opportunities to fall into their laps, crisscrossed the various feudal states; literati who previously had no cause to use military force became, one by one, the honored guests of the feudal lords. With the breakdown of the previously simple and obvious order, the gradually dismantling of the common body of the ancestral clan of the past, and the increasing complexities of social relationships after the dissolution of blood ties, social order became a matter of concern. Or, to reword this most practical issue: How could this universally chaotic society go from disorder to order? (shrink)

This study answers Vazquez’s :691–709, 2016) call for more research focused on the intersection between family firms and business ethics. We investigate two contextual factors potentially affecting the ethical reporting of chief financial officers : a firm’s social ties to the controlling family and the CFOs’ perceived relationship quality with the CEO. We test our hypotheses by examining the financial reporting behavior of Chinese CFOs who work at family or nonfamily businesses and in private or public firms. Results (...) of this study advance our understanding of social and contextual factors that may compromise CFOs' reporting behavior in family firms. This research also suggests that failure to distinguish between public and private companies may bias the results of studies that examine family firms. (shrink)

Issues of social justice underlie the clamour for greater gender balance in top-management. The present study reveals that pursuit of such social justice is also value-enhancing in relation to the longer-run performance of initial public offerings stocks, especially where female board members are unencumbered by family-connection with other directors. This study examines the economic benefits of board gender diversity for state- and privately controlled firms in the Hong Kong IPO market. Gender board diversity is much less common in (...) state-run IPO firms. Within the subset of privately controlled IPO firms, distinction exists between entities that accommodate family-connected board officers and those that do not. Specifically, this study focuses on family-ties between board members. This issue allows for finer-grained assessment of family influence on firm performance. Stronger post-listing stock, return-on-assets and sales-on-assets performance arise in privately controlled firms without family-connected board members and in state-run entities. Gender diversity thus serves as a positive, but only when female director presence is untrammelled by family associations between directors. However, there is little evidence of a link between female board representation and IPO underpricing. Relative to state-backed issuers, privately controlled firm boards accommodate more women, younger officers and a broader mix of nationalities, but appear more-inclined to unify CEO and chair positions. Board duality, the fraction of independent directors and directors’ age and nationality exhibit little relation with initial and aftermarket stock returns. In prescriptive terms, minority investors gain from the inclusion of female directors, especially when IPO firm directors are unencumbered by family-affiliation with other board members. Results therefore add to the clarion of calls for greater female board presence. (shrink)

While the effect of top executives' social networks on their compensations has received substantial scholarly attention, little effort has been made to integrate segmented views to offer more complete understanding of this effect. In this paper, we propose an integrative two-stage model by taking both economic and socio-political views into account. We theorise that some characteristics of top executive's outside social ties are positively related to firm performance, and those relationships are conditioned by external and internal strategic (...) contexts, such as environmental uncertainty, strategic relevance, and tie strength. We also theorise that firm performance leads to executives' compensations, but this linkage is moderated by the socio-political dynamics among executives (within-group dynamics) as well as between executives and a board of directors (between-group dynamics) inside the firm. Based on our integrative framework, this paper provides the comprehensive understanding of how executives' compensations are determined and highlights the importance of executive's social ties and their implications. (shrink)

Since the late 1970s, disruptions and “failure” of maternal-infant bonding have been causally linked to postpartum depression. Part I of this paper examines the grounds for this connection while tracing the ramifications of bonding theory (Klaus and Kennell 1976) through obstetrics, pediatrics, and psychiatry, as well as in the (mis)representations of it in the popular media. This discussion resolves into a view of maternal attachment as a long-term development progressively established through intensive mother-infant interaction. The forms of this interaction are (...) phylogenetically determined, albeit culturally and personally mediated. Flowing from this premise, Part II of the paper casts postpartum depression as an adaptive response to threat (from whatever cause) to adequate mothering, and develops an argument for the evolutionary role of enacted social ties in the establishment of maternal responsiveness. (shrink)

This paper investigates the influence that social ties can have on behavior. After defining the concept of social ties that we consider, we introduce an original model of social ties. The impact of such ties on social preferences is studied in a coordination game with outside option. We provide a detailed game theoretical analysis of this game while considering various types of players, i.e., self-interest maximizing, inequity averse, and fair agents. In addition (...) to these approaches that require strategic reasoning in order to reach some equilibrium, we also present an alternative hypothesis that relies on the concept of team reasoning. After having discussed the differences between the latter and our model of social ties, we show how an experiment can be designed so as to discriminate among the models presented in the paper. (shrink)

Autant que la position de la femme dans la société, le principe de la matrilinéarité juive est révélateur des normes qui régissent le lien social. Le système de filiation matrilinéaire s’est installé dans le judaïsme sur la base de l’interprétation du dit talmudique affirmant Ton fils né d’une idolâtre n’est pas ton fils mais le sien (Qid. 68b). Il entérinait un processus enclenché quelques siècles plus tôt, à l’époque de la Mishna, autour du premier siècle de l’ère, mettant un (...) terme à la longue tradition biblique qui ne percevait de filiation que patrilinéaire, et instaurait, ce faisant, un modèle de transmission de la judéité qui perdure jusqu’à nos jours. Cette transformation majeure était-elle due à une évolution interne de la pensée rabbinique rationalisant la judéité au regard des affiliations? Ou à des contraintes extérieures liées à l’imposition de nouvelles réglementations du statut de la personne? Les deux hypothèses d’interprétations sont débattues – et parfois se rejoignent – dans les recherches menées sur la filiation ou l’identité juive. Cet article examine les conditions de la transmission de l’identité de la personne, telles qu’elles ont été traitées et définies au long des siècles par l’institution de normes juridiques et sociales régulant la filiation, la conversion et l’héritage, toutes normes qui éclairent les évolutions du statut de la femme dans l’histoire du judaïsme entre l’Antiquité tardive et le Moyen Âge. (shrink)

Business Ethics, the Environment & Responsibility, Volume 31, Issue 2, Page 419-437, April 2022.

This study employed a scenario-based approach whereby participants were asked to choose which communication channel they prefer in certain situations. The first aim was to determine the effect of the topic of interactions and social ties on channel choice. The second aim was to examine the underlying mechanisms in the relation between interaction topic and social ties and channel choice. A questionnaire was administered among 238 participants, who were presented five communication scenarios with topics of low (...) and high intimacy and four social ties, ranging from weak to strong. Results revealed that preference for face-to-face communication was highest, followed by audio-only computer-mediated communication and text-based CMC. Preference for FtF communication was higher when people valued feeling co-present and decreased when people valued feeling anonymous. Our results showed that communication channel choice is strategic and the choice for FtF ommunication, audio-only and text-based CMC largely depends on controllability, anonymity and co-presence. (shrink)

This paper aims to analyse how the discourse of CEO letters and other factors influence community involvement and Social Licence to Operate (SLO) in the mining industry. The analysis is based on qualitative information disclosed in sustainability reports and CEO letters from 32 mining firms. Content analysis was undertaken to obtain data for the study, and then a regression analysis and a multiple correspondence analysis were used to test the hypotheses defined in the study. The results indicate that the (...) CEO discourse influences how a firm expresses the importance of gaining its SLO, the philanthropic activities in which companies become involved and the destinations of the investments in the communities in which they operate. The results also show changes in the discourse between 2011 and 2015, which are, in part, explained by the difficult situation experienced by the sector during this period. The paper contributes to the Corporate Social Responsibility literature by integrating different theories from this field into the SLO framework. The analysis carried out and the results obtained are useful for both CEOs and Sustainability Managers, especially in managing their relationships with the communities where they operate or intend to operate. (shrink)

This paper aims to analyse how the discourse of CEO letters and other factors influence community involvement and Social Licence to Operate (SLO) in the mining industry. The analysis is based on qualitative information disclosed in sustainability reports and CEO letters from 32 mining firms. Content analysis was undertaken to obtain data for the study, and then a regression analysis and a multiple correspondence analysis were used to test the hypotheses defined in the study. The results indicate that the (...) CEO discourse influences how a firm expresses the importance of gaining its SLO, the philanthropic activities in which companies become involved and the destinations of the investments in the communities in which they operate. The results also show changes in the discourse between 2011 and 2015, which are, in part, explained by the difficult situation experienced by the sector during this period. The paper contributes to the Corporate Social Responsibility literature by integrating different theories from this field into the SLO framework. The analysis carried out and the results obtained are useful for both CEOs and Sustainability Managers, especially in managing their relationships with the communities where they operate or intend to operate. (shrink)

This study investigates the influence of chief executive officers' (CEOs) career horizon on the adoption of Global Reporting Initiative (GRI) standards for corporate social responsibility (CSR) reporting. Using data from A-share Chinese listed firms on the Shanghai and Shenzhen stock exchanges from 2010 to 2020, we employ logistic regression analysis to examine the empirical relationship. Our findings indicate that companies led by CEOs with shorter career horizons (older CEOs) are less inclined to adopt GRI reporting standards for CSR reporting. (...) This association is particularly pronounced in non-state-owned enterprises compared to state-owned enterprises. Additionally, we observe a weaker relationship between CEO career horizon and GRI adoption when the CEO possesses foreign experience. These results remain robust across various measures of CEO career horizons and econometric methodologies as well. The implications of our findings are significant for understanding the development and implementation of GRI standards for CSR reporting, particularly within the context of China. (shrink)

This paper examines the relationship between CEO incentives and strong and weak corporate social performance. Using the KLD database we find that incentives have no significant relationship with strong social performance. Salary and long-term incentives have a positive association with weak social performance.

Research suggests that international assignment experience enhances awareness of societal stakeholders, influences personal values, and provides rare and valuable resources. Based on these arguments, we hypothesize that CEO international assignment experience will lead to increased corporate social performance (CSP) and will be moderated by the CEO's functional background. Using a sample of 393 CEOs of S&P 500 companies and three independent data sources, we find that CEO international assignment experience is positively related to CSP and is significantly moderated by (...) the CEO's functional background. Specifically, CEOs with international assignment experience and an output functional background (e.g., marketing and sales) are positively associated with greater CSP. (shrink)

This study examined the relationship between CEO ethical leadership and corporate social responsibility by focusing on the mediating role of organizational ethical culture and the moderating role of managerial discretion. Based on a sample of 242 domestic Chinese firms, we found that CEO ethical leadership positively influences corporate social responsibility via organizational ethical culture. In addition, moderated path analysis indicated that CEO founder status strengthens while firm size weakens the direct effect of CEO ethical leadership on organizational ethical (...) culture and its indirect effect on corporate social responsibility. Theoretical and managerial implications of these results are discussed. (shrink)

This study uncovers a new finding on the impact of CEO tenure on corporate social and environmental performance (CS&EP) in coastal and non-coastal areas of China using fixed-effect panel data regression models. The Two-Stage Least Squares instrumental panel regression is used to validate the veracity of the empirical results. To this end, we extract data from all non-financial Chinese listed firms for the period of 2009 to 2015. By applying the multivariant framework, the findings of the study exhibit a (...) negative and significant effect of CEO tenure on CS&EP. Moreover, this study shows that firms with head offices in coastal areas of China tend to weaken the negative impact of CEO tenure on CS&EP, indicating that CS&EP is more focused in coastal areas of China than non-coastal ones. The findings suggest that the increase in CEOs’ CS&EP in the early years of their service tenure tends to increase their compensation packages. This study is useful for policymakers to link CS&EP with firm economic practices to attain sustainable development objectives. (shrink)

This study examines the impact of chief executive officer ability on firms’ corporate social responsibility performance. We find that firms’ CSR performance increases with CEO ability. Specifically, firms with more able CEOs are associated with more socially responsible activities and fewer socially irresponsible activities, and are associated with more stakeholder CSR rather than third-party CSR. We further find that the positive relation between CEO ability and CSR is weakened for CEO who is also the chair of the board and (...) for CEO who is close to retirement; and is weakened when the CSR emphasis exerted by a firm’s external environment is high. Our results are robust after controlling for firm fixed effects and to the use of multiple measures of CSR performance and CEO ability. Overall, our evidence is consistent with our conjecture that more able CEOs have less career concerns so that these CEOs are more willing to undertake long-term investments in socially beneficial activities, leading to better CSR performance. (shrink)

This paper examines the influence of CEO career horizon problems on corporate social responsibility. We assume that as CEOs are getting older, they tend to disengage in CSR due to their shorter career horizons. We further argue that high levels of industry-level discretion and blockholder ownership amplify the negative effects of CEO age on CSR. Using a panel sample of US-based firms over 2004–2009, we do not find the main effect of CEO age on CSR, but find support for (...) the moderating effects, such that CEO age is negatively associated with CSR when there are high levels of ILD and blockholder ownership. Therefore, results suggest that CEO career horizon problems matter for CSR when CEOs have sufficient discretion over the firm’s strategic decisions and outside blockholders put more pressure on CEOs to engage in financial earning management. (shrink)

Previous studies in Western contexts have examined the relationships between various board characteristics and CSR, yet the relationships need to be re-examined in non-Western contexts given differential theoretical premises across contexts. We specifically propose that the effects of board characteristics on CSR in Korea should be patterned distinctively from Western-based existing literature, focusing on three important board characteristics, such as a board’s independence, social ties, and diversity. Using a panel dataset from large Korean firms, we found that various (...) relationships between board characteristics and CSR were non-linear, whereas most of the previous research on Western contexts found that the same relationships were linear. Specifically, curvilinear relationships were found between CSR and board independence, CEO-outside director social ties, and educational diversity. Our findings suggest that there is no universal feature of CSR-supportive board characteristics due to the unique characteristics of various institutional contexts. (shrink)

This study examines whether the chief executive officer’s poverty experience has an impact on firms’ corporate social responsibility. We find that firms’ CSR performance increases with CEOs’ poverty experience; specifically, firms with CEOs who experienced early-life poverty are associated with more socially responsible activities and fewer socially irresponsible activities, such as on-the-job consumption, and are more associated with key stakeholder-related rather than community-related CSR. We further find that the positive relationship between the CEO’s poverty experience and CSR strengthens for (...) well-educated or powerful CEOs. Our evidence is consistent with our conjecture that CEOs who experienced early-life poverty have stronger compassion and prosocial psychology. Consequently, these CEOs are more willing to make long-term investments in socially beneficial activities, leading to better CSR performance, which further confirms the altruistic motivation of CSR. (shrink)

Business Ethics, the Environment & Responsibility, EarlyView.

In this study, we explore the role of Chief Executive Officers’ incentives, split between monetary and non-monetary, in relation to corporate social responsibility. We base our analysis on a sample of 597 US firms over the period 2005–2009. We find that both monetary and non-monetary incentives have an effect on CSR decisions. Specifically, monetary incentives designed to align the CEO’s and shareholders’ interests have a negative effect on CSR and non-monetary incentives have a positive effect on CSR. The study (...) has important implications for the design of executive remuneration plans, as we show that there are many levers that can affect the CEO’s decisions with regard to CSR. Our evidence also confirms the prominent role of the CEO in relation to CSR decisions, while also recognizing the complexity of factors affecting CSR. Finally, we propose a research design that takes into account endogeneity issues arising when examining compensation variables. (shrink)

While there are growing bodies of research examining both the differences between strongly and poorly socially performing firms, and the impact of firm leaders on other strategic outcomes, little has been done in examining the effect of firm leaders on corporate social performance (CSP). This study directly addresses this issue by using upper echelon theory, and the KLD Research Analytics CSP ratings, to show that observable CEO characteristics predict differences in CSP between firms, even when firm and industry characteristics (...) are controlled for. Using a sample of 650 public US firms I find that strong or exemplary CSP, as measured by the strengths categories of KLD's ratings, is positively related to the CEO having a bachelor's degree in humanities, having a breadth of career experience and being female. I find that KLD strength ratings are negatively related to the CEO having a bachelor's degree in economics and to their level of short-term compensation. Preliminary tests of causality support the assertion that these effects reflect CEO discretion rather than being an artifact of reverse causality. Significant relationships between the CEO characteristics and poor social performance as measured by the concerns categories of KLD's ratings are not found. This suggests that CEOs have more discretion in influencing strong and exemplary social performance than in impacting poor CSP. Implications, particularly for economics education, are discussed. While there are many fruitful directions for future research, the benefits and challenges to conducting similar studies in other countries is focused upon to correspond to the global nature of this special issue. (shrink)

Studies linking religion to CSR have produced conflicting findings due to a failure to draw distinctions among religious influences and different CSR practices, and to theorize their connection. Drawing on social identity theory and the theory of planned behavior, we first argue that religion will influence CSR when ethical values from a CEO’s religious social identification resonate with an aspect of CSR. Second, CEO attitudes congruent with those values and forms of CSR—interpersonal empathy and proactiveness—will strengthen that relationship. (...) Third, the relationship between religious social identification and CSR will be strengthened by a CEO’s ability to enact CSR policies, a function of personal and firm market power. Our research on 270 CEOs from 242 publicly traded US firms from 2007 to 2020 supports these relationships. (shrink)

Drawing on strategic choice theory, we investigate the influence of CEO leadership styles and personal attributes on the implementation of organizational diversity management practices. Specifically, we examined CEO transformational and transactional leadership in relation to organizational diversity practices and whether CEO social values and age may moderate these relationships. Our results suggest that transformational leadership is most strongly associated with the implementation of diversity practices. Transactional leadership is also related to the implementation of diversity management practices when either CEO (...) social values or age are relatively high. These findings extend previous work examining predictors of diversity management in organizations and highlight the central role that organizational leaders may play in the successful implementation of these practices. (shrink)

Drawing on the Agency-Stewardship approach, which suggests that manager profile may range from the agent model to the steward model, this article aims to examine how important CEOs are to corporate social responsibility (CSR). Specifically, this exploratory study proposes the existence of a relationship between manager profile and CSR practices and that this relation is mediated by the perceived role of ethics and social responsibility. After applying a mediated regression analysis using survey information collected from 149 CEOs in (...) Spain, results show that those closer to the steward model are more inclined to attach great importance to ethics and social responsibility, and to implement CSR practices in their companies. Results also provide support for the suggested mediating effect. Thus, this article extends research in understanding top managers as drivers for CSR and suggests new ways to deal with this issue empirically. (shrink)

This study examines whether and how the presence of managerial hedging opportunities, which allows executives to reduce the sensitivity of their equity-based compensation to the firm’s stock price performance, affects firms’ corporate social responsibility (CSR) activities. We find a significant and negative relationship between the presence of managerial hedging opportunities and firms’ CSR performance. The effect of managerial hedging opportunities on CSR performance is more pronounced for CEOs with greater personal hedging needs. Additionally, the effect is weakened if firms (...) limit corporate insiders from trading exchange-listed options. Overall, this study suggests that allowing managers to delink their equity-based compensation from firm stock price performance through hedging their personal portfolios can lead to unexpected consequences for firms’ CSR performance. (shrink)

Social contract theory offers a powerful method and metaphor for the study of organizational ethics. This paper considers the variant of the social contract that has arguably gained the most attention among business ethicists: integrative social contracts theory or ISCT [Donaldson and Dunfee: 1999, Ties That Bind (Harvard Business School Press, Boston)]. A core precept of ISCT - that consent to membership in an organization entails obligations to follow the norms of that organization, subject to the (...) moral minimums of basic human rights - is a reasonable and appealing notion. One potential challenge for those attempting to apply this idea, however, lies in the dynamic nature of social norms. Organizational norms evolve, often through the conscious efforts of community members and leaders. As currently formulated, ISCT offers a framework that under-appreciates the evolving nature of moral norms. In this paper, we extend ISCT by considering the circumstances under which the terms of and parties to social contracts change. We also consider a number of principles that should be considered as the terms and parties to organizational social contracts change. (shrink)

Social contract theory offers a powerful method and metaphor for the study of organizational ethics. This paper considers the variant of the social contract that has arguably gained the most attention among business ethicists: integrative social contracts theory or ISCT [Donaldson and Dunfee: 1999, Ties That Bind (Harvard Business School Press, Boston)]. A core precept of ISCT – that consent to membership in an organization entails obligations to follow the norms of that organization, subject to the (...) moral minimums of basic human rights – is a reasonable and appealing notion. One potential challenge for those attempting to apply this idea, however, lies in the dynamic nature of social norms. Organizational norms evolve, often through the conscious efforts of community members and leaders. As currently formulated, ISCT offers a framework that under-appreciates the evolving nature of moral norms. In this paper, we extend ISCT by considering the circumstances under which the terms of and parties to social contracts change. We also consider a number of principles that should be considered as the terms and parties to organizational social contracts change. (shrink)

Corporate social responsibility is one of the most important business strategies which helps enterprises obtain competitive advantage and improve performance. Scholars have conducted many beneficial studies on the driving factors of CSR behaviors from the perspective of CEO traits, but rarely focus on the impact of the CEO's early family experiences. This study aims to fill this research gap by investigating the influence of CEO birth order on firms' CSR behaviors, and further exploring the possible moderating effects of the (...) presence of a female sibling and the age gap between the CEO and the closest sibling. This study takes Chinese non-financial private listed companies from 2010 to 2017 as the research samples, and empirically tests the relationship between CEO birth order and a firm's CSR behaviors. The empirical results show that CEO birth order negatively influences corporate social responsibility behaviors, and this relationship would be weakened when the CEO has a female sibling or the age gap between CEO and the closest sibling is larger. This paper extends the research on personal family factors from the field of social psychology to the business field and finds a new driving factor of corporate social responsibility behavior from the perspective of the CEOs' early family factors. (shrink)

Academic experience has been found to significantly impact on the attitudes and behaviors of managerial decision-makers, which in turn influences corporate strategic decisions. However, the impact of academic decision-makers on corporate ethical decisions, particularly corporate social irresponsibility (CSIR), has yet to receive due attention to date. In this study, we integrate the upper echelons theory and managerial discretion literature to examine whether and when academic CEOs (CEOs with academic experience) influence corporate social irresponsibility (CSIR). First, we suggest that (...) academic CEOs discourage CSIR because they have higher moral standards; thus, their companies are less likely to engage in CSIR activities. In addition, we propose that negative attainment discrepancy (slack resources) reduces (enhances) academic CEOs' managerial discretion to incorporate their ethical preferences into their decisions, thereby weakening (enhancing) the above relationship. This study is the first to examine the relationship between academic CEOs and CSIR. Additionally, the empirical findings of this study offer crucial insights for shareholders and policymakers to prevent or mitigate CSIR effectively. (shrink)

Business Ethics, the Environment & Responsibility, Volume 31, Issue 1, Page 17-32, January 2022.

This study investigates the effect of each component of CEO compensation, including cash-based component (salary and bonus), equity-based component (stock grant and stock option), and other perks on disclosure of corporate social responsibility (CSR) information of global firms. The study uses 2SLS IV estimation method and a sample of 580 US-based firms in a seven-year period. The study finds that equity-based remuneration has a significant and positive impact on a firm's CSR disclosure while CEO salary, bonus, and other perquisites (...) have significant detrimental effects on CSR disclosure. The paper indicates that a CEO's motivation for CSR reporting might arise from stock grant and option; meanwhile, salary, bonus and other perks could demotivate the CEO in this regard. Our findings offer insight into designing CEO compensation packages to meet shareholders' interests and stakeholders' expectations for a sustainable business. (shrink)

I am happy to comment on T S Petersen’s1 examination of the ‘individualization argument against non-medical egg freezing ’. Petersen intervenes in the ethical discussion on egg freezing by critically reconsidering a specific type of argument against oocyte cryopreservation for reasons that are not directly related with medical issues. Petersen dissects the claim that such non-medical usage is ‘an individualistic and morally problematic solution to the social problems that women face, for instance, in the labour market’.1 Proponents of this (...) argument believe that egg freezing should not be used by women on an individual level to solve social problems but that one should instead address gendered inequalities on the labour market. Petersen asserts that this individualisation argument is unconvincing—although morally appealing—because of empirically and ethically flawed assumptions. I am enthusiastic—with some minor reservations—about his unravelment of the individualisation argument and his call for more empirical backing. As I understand his presentation, the argument that is the subject of Petersen’s analysis is a recurring argumentative trope in the broader realm of assisted reproduction ethics. For instance, the anticipated positive effect of artificial womb technology in terms of liberation from reproductive and related social inequalities is one of the most dominant ectogenesis …. (shrink)

Using a signaling framework, we argue that ethical behavior as evidenced by charitable donations is viewed more positively by investors when seen not to be based on self-serving motives but rather on authentic generosity that builds moral capital. The affirmed religiosity of CEOs may make their ethical position more credible, while their embeddedness within a family business suggests that CEOs are backed by powerful owners with long-time horizons and a desire to build moral capital with stakeholders. We find in a (...) study of market responses to 1572 corporate donations by S&P 1500 firms that financial markets react more positively to charitable initiatives from firms with religion-declared CEOs, but only if these are family businesses. (shrink)

This paper examines the development of British psychiatrist and psychoanalyst John Bowlby's views and their scientific and social reception in the United States during the 1950s. In a 1951 report for the World Health Organization Bowlby contended that the mother is the child's psychic organizer, as observational studies of children worldwide showed that absence of mother love had disastrous consequences for children's emotional health. By the end of the decade Bowlby had moved from observational studies of children in hospitals (...) to animal research in order to support his thesis that mother love is a biological need. I examine the development of Bowlby's views and their scientific and social reception in the United States during the 1950s, a central period in the evolution of his views and in debates about the social implications of his work. I argue that Bowlby's view that mother love was a biological need for children influenced discussions about the desirability of mothers working outside the home during the early Cold War. By claiming that the future of a child's mind is determined by her mother's heart, Bowlby's argument exerted an unusually strong emotional demand on mothers and had powerful implications for the moral valuation of maternal care and love. (shrink)