CEO Ability and Corporate Social Responsibility

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalNot applicablepeer-review

5 Scopus Citations
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Detail(s)

Original languageEnglish
Pages (from-to)391–411
Journal / PublicationJournal of Business Ethics
Volume157
Issue number2
Early online date4 Jul 2017
Publication statusPublished - Jun 2019

Abstract

This study examines the impact of chief executive officer (CEO) ability on firms’ corporate social responsibility (CSR) 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.

Research Area(s)

  • CEO ability, Career concerns, Corporate social responsibility, Long-term investment, CSR emphasis

Citation Format(s)

CEO Ability and Corporate Social Responsibility. / Yuan, Yuan; Tian, Gaoliang; Lu, Louise Yi; Yu, Yangxin.

In: Journal of Business Ethics, Vol. 157, No. 2, 06.2019, p. 391–411.

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalNot applicablepeer-review