scholarly journals Dispositional Sources of Managerial Discretion: CEO Ideology, CEO Personality, and Firm Strategies

2018 ◽  
Vol 64 (4) ◽  
pp. 855-893 ◽  
Author(s):  
Abhinav Gupta ◽  
Sucheta Nadkarni ◽  
Misha Mariam
Keyword(s):  
Corporate Social Responsibility ◽  
Personality Traits ◽  
Political Ideology ◽  
Fortune 500 ◽  
Managerial Discretion ◽  
Primary Data ◽  
Firm Strategies ◽  
Political Ideologies ◽  
Corporate Social ◽  
The Relationship

We investigate the dispositional sources of managerial discretion by theorizing that CEOs’ personality traits affect the extent to which their firms’ strategies reflect their preferences. In a longitudinal study of Fortune 500 firms, we examine the moderating influence of two personality traits—narcissism and extraversion—on the relationship between CEOs’ liberal- or conservative-leaning political ideologies and two firm strategies: corporate social responsibility (CSR) and workforce downsizing. We anticipate and confirm that liberal-leaning CEOs are more likely than others to enact CSR practices, and conservative-leaning CEOs are more likely than others to engage in downsizing. We find that extraversion strengthens these effects: it increases liberal CEOs’ use of CSR and conservative CEOs’ use of downsizing. Narcissism likewise strengthens the effect of CEO liberalism on CSR, but it does not significantly moderate the effect of CEO conservatism on downsizing. In a supplementary study using primary data from working professionals, we further explore the distinct mechanisms associated with these two personality traits. We find that narcissism relates strongly to individuals’ inflated perception of their discretion, whereas extraversion relates to their ability to sell an issue to others. Our study furthers research on managerial discretion by providing nuanced theory and evidence on innate sources of CEOs’ influence, and it enhances research on CEOs’ political ideology by spotlighting the dispositional boundary conditions of its effects on firms’ strategies.

Are All Narcissistic CEOs Socially Responsible? An Empirical Investigation of an Inverted U-Shaped Relationship Between CEO Narcissism and Corporate Social Responsibility

2021 ◽  
pp. 105960112110406
Author(s):  
Marwan Al-Shammari ◽  
Abdul A. Rasheed ◽  
Soumendra N. Banerjee
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Linear Relationship ◽  
Empirical Investigation ◽  
Fortune 500 ◽  
Ceo Power ◽  
Socially Responsible ◽  
Ceo Narcissism ◽  
Corporate Social ◽  
The Relationship

We investigate the relationship between CEO narcissism and corporate social responsibility (CSR). We suggest an alternative to the current assumption of a linear relationship between CEO narcissism and CSR. Instead, we propose an inverted U relationship between the two. Although narcissistic CEOs may engage in CSR, we argue that highly narcissistic CEOs may be drawn to actions that would garner greater attention and they may be less inclined to engage in CSR. Based on a sample of Fortune 500 firms during the period 2006–2013, we find support for an inverted U relationship and support for our arguments that CEO power moderates the relationship between CEO narcissism and CSR.

Influence of Internal Corporate Social Responsibility on Employee Retention With Special Reference to the Apparel Industry in Sri Lanka

2022 ◽  
pp. 2138-2154
Author(s):  
A. G. N. K. Fernando ◽  
Jayaranjani Sutha
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Intrinsic Motivation ◽  
Employee Retention ◽  
Positive Relationship ◽  
Apparel Industry ◽  
Primary Data ◽  
Critical Issues ◽  
Corporate Social ◽  
The Relationship

Employee retention is emerging as a critical issues impact on the competitive advantage. Internal corporate social responsibility (CSR) has been creating so much attention in the minds of employees during the recent years. Thus, the chapter is based on three objectives: First, it explores the relationship between internal CSR and employee retention. Second, it identifies how intrinsic motivation mediates the relationship between internal CSR and employee retention. Finally, it determines the internal CSR activities which the apparel industry should pay more attention to in order to better employee retention. Primary data were collected by using questionnaires, and the results of the study indicated that there is a positive relationship between internal CSR and employee retention. Moreover, intrinsic motivation partially mediates the relationship between the internal CSR and employee retention. The findings of the study identify the internal CSR activities which the apparel industry should pay more attention to in order to develop retention programs in the future.

scholarly journals Corporate Social Responsibility: Motives and Financial Performance

2020 ◽  
Vol 8 (4) ◽  
pp. 76
Author(s):  
Muhannad Atmeh ◽  
Mohammad Shaban ◽  
Malek Alsharairi
Keyword(s):  
Regression Analysis ◽  
Corporate Social Responsibility ◽  
Financial Performance ◽  
Financial Services ◽  
Primary Data ◽  
Pharmaceutical Technology ◽  
Long Time ◽  
Corporate Social ◽  
First Time ◽  
The Relationship

The relationship between companies and society has been questioned for a long time. However, the effect of the motives behind CSR regarding the companies’ actual engagement with CSR has received little attention, especially in emerging markets. This paper tackles this issue for the first time using a sample of Jordanian companies. We explore the effect of two types of motives on the level of engagement in CSR: extrinsic motive (financial) and intrinsic motives (ethical and altruistic). The relationship between the company’s actual financial performance and CSR is also investigated. Primary data were collected using a questionnaire, distributed to Jordanian company’s managers in five sectors: pharmaceutical, technology and telecommunication, construction, farming, and financial services. Multiple regression analysis was conducted to depict the relationships. Results show that the intrinsic motives have a significant effect on CSR, while the extrinsic motive has none. When intrinsic motives were tested separately, results showed that the ethical motive had a significant effect, while the altruistic had no effect. In both cases, CSR was shown to be more significantly driven by the company’s financial performance. Different stakeholders such as policymakers, entrepreneurs, researchers, and investors may use the results of this study to increase companies’ involvement in CSR.

Influence of Internal Corporate Social Responsibility on Employee Retention With Special Reference to the Apparel Industry in Sri Lanka

2019 ◽  
pp. 329-345
Author(s):  
A. G. N. K. Fernando ◽  
Jayaranjani Sutha
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Intrinsic Motivation ◽  
Employee Retention ◽  
Positive Relationship ◽  
Apparel Industry ◽  
Primary Data ◽  
Critical Issues ◽  
Corporate Social ◽  
The Relationship

Employee retention is emerging as a critical issues impact on the competitive advantage. Internal corporate social responsibility (CSR) has been creating so much attention in the minds of employees during the recent years. Thus, the chapter is based on three objectives: First, it explores the relationship between internal CSR and employee retention. Second, it identifies how intrinsic motivation mediates the relationship between internal CSR and employee retention. Finally, it determines the internal CSR activities which the apparel industry should pay more attention to in order to better employee retention. Primary data were collected by using questionnaires, and the results of the study indicated that there is a positive relationship between internal CSR and employee retention. Moreover, intrinsic motivation partially mediates the relationship between the internal CSR and employee retention. The findings of the study identify the internal CSR activities which the apparel industry should pay more attention to in order to develop retention programs in the future.

Do Bankers Use Managerial Discretion with Regard to CSR and Earnings Management to Rebuild Their Reputation in the Aftermath of the Financial Crisis?

2016 ◽  
Vol 3 (2) ◽  
pp. 14-41
Author(s):  
Ada Sneekes ◽  
Georgios Georgakopoulos ◽  
Alexandros Sikalidis ◽  
Maria Rodosthenous
Keyword(s):  
Corporate Social Responsibility ◽  
Earnings Management ◽  
Economic Performance ◽  
Banking Industry ◽  
Managerial Discretion ◽  
Earning Management ◽  
Bank Managers ◽  
Self Interest ◽  
Corporate Social ◽  
The Relationship

In this paper the authors examine the relationship between CSR (Corporate Social Responsibility) performance and earning management in the banking industry from 2008 to 2012 having a specific focus on managerial behaviour and its impact on banks' reputation. They propose that when managers opportunistically engage in CSR, they will also engage in opportunistic earnings management but if they engage in CSR practices because it is the socially ‘right thing to do' then earnings will better reflect banks' true economic performance. Finally, they expect that when bank managers recognize the importance of societal trust they use their discretion to regain trust and to rebuild reputation. Their results show that in general, banks that perform high on CSR indicators behave more transparently with regard to the presentation of earnings. Banks that engage in CSR activities to improve their reputation, use managerial discretion to show socially desirable earnings numbers. For banks that value their reputation, pursuing societal trust is more important than the fulfilling of self-interest.

scholarly journals Peningkatan Kinerja Bank Syariah: Analisis Peran Corporate Social Responsibility dan Reputasi

2021 ◽  
Vol 1 (3) ◽  
pp. 620-631
Author(s):  
Lailatul Mukarromah
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Secondary Data ◽  
Partial Least Square ◽  
Least Square ◽  
Primary Data ◽  
And Performance ◽  
Public Banks ◽  
Corporate Social ◽  
The Relationship

This research aims to test the influence of corporate social responsibility (CSR) on the financial performance of Sharia banks, both directly and through reputation mediation. The data used consists of primary and secondary data. Primary data was obtained from questionnaires of 215 respondents, while secondary data was obtained from the 2018 annual report of seven sharia public banks. The analysis method used in this research is partial least square (PLS) using SmartPLS software version 2.0. The findings reveal that CSR has no effect on the performance of sharia banks, and reputation cannot mediate the relationship between the two. This result contributes literature on the relationship between CSR, reputation and performance of sharia banks, and can be used as a guideline for Sharia banks to continue to carry out CSR activities.

Do Bankers Use Managerial Discretion With Regard to CSR and Earnings Management to Rebuild Their Reputation in the Aftermath of the Financial Crisis?

2019 ◽  
pp. 1103-1134
Author(s):  
Ada Sneekes ◽  
Georgios Georgakopoulos ◽  
Alexandros Sikalidis ◽  
Maria Rodosthenous
Keyword(s):  
Corporate Social Responsibility ◽  
Earnings Management ◽  
Economic Performance ◽  
Banking Industry ◽  
Managerial Discretion ◽  
Earning Management ◽  
Bank Managers ◽  
Self Interest ◽  
Corporate Social ◽  
The Relationship

In this paper the authors examine the relationship between CSR (Corporate Social Responsibility) performance and earning management in the banking industry from 2008 to 2012 having a specific focus on managerial behaviour and its impact on banks' reputation. They propose that when managers opportunistically engage in CSR, they will also engage in opportunistic earnings management but if they engage in CSR practices because it is the socially ‘right thing to do' then earnings will better reflect banks' true economic performance. Finally, they expect that when bank managers recognize the importance of societal trust they use their discretion to regain trust and to rebuild reputation. Their results show that in general, banks that perform high on CSR indicators behave more transparently with regard to the presentation of earnings. Banks that engage in CSR activities to improve their reputation, use managerial discretion to show socially desirable earnings numbers. For banks that value their reputation, pursuing societal trust is more important than the fulfilling of self-interest.

Corporate social responsibility and firm performance of Ghanaian SMEs

2017 ◽  
Vol 8 (1) ◽  
pp. 47-62 ◽  
Author(s):  
Otuo Serebour Agyemang ◽  
Abraham Ansong
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Design Methodology ◽  
Primary Data ◽  
Firm Reputation ◽  
Content Type ◽  
Corporate Social ◽  
The Relationship ◽  
Practical Implications

Purpose This paper aims to examine the influence of corporate social responsibility on financial performance of small and medium-sized enterprises (SMEs) in Ghana by using access to capital and firm reputation as mediating variables. Design/methodology/approach The authors collected primary data from 423 SMEs within the Accra Metropolis. Partial least squares estimation technique was used to analyze the data. Findings The authors documented evidence for a mechanism through which corporate social responsibility results in financial performance of firms: SMEs with improved corporate social responsibility practices are better positioned to achieve enhanced reputation, which translates into improved financial performance. Even though this study did not document a significant relationship between corporate social responsibility and access to finance by Ghanaian SMEs, the authors contend that looking at the positive relationship between them, SMEs can minimize their capital constraints by embarking on CSR practices, which can eventually translate into financial performance. Practical implications The authors recommend that for SMEs to enhance their reputation and increase their access to capital, which will eventually result in enhanced financial performance, corporate social responsibility practices should be a major part of their operations. Originality/value It contributes to our knowledge on how CSR practices lead to financial performance of SMEs in developing countries. In addition, this is the first of its kind to establish the relationship between CSR practices and financial performance of SMEs in Ghana by using access to capital and firm reputation as mediating factors.

scholarly journals The Relationship between CEO Psychological Biases, Corporate Governance and Corporate Social Responsibility

2021 ◽  
Vol 14 (7) ◽  
pp. 317
Author(s):  
Bassem Salhi
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Real Estate ◽  
Social Responsibility ◽  
Personality Traits ◽  
Least Square ◽  
Governance Practices ◽  
Corporate Social ◽  
The Relationship

Despite that the relationship between corporate social responsibility activities and real estate operations seems relevant, only some studies have been conducted to explore the reasons that drive these activities in real estate companies. This work presents the relationship between CEO personality traits and corporate social responsibility (CSR) and shows whether corporate governance (CG) practices mitigate or enhance this relationship. This study uses a sample of 420 firm-year-observations using a sample of European real estate firms indexed on Stoxx Europe 600 Index from 2010 to 2019. To test the developed hypotheses, feasible generalized least square (FGLS) regression is applied. The results show that increased confidence in CEOs is an important factor in determining corporate incentives to undertake social responsibility activities. In addition, it has been shown that effective corporate governance practices lead significantly to moderate CEO behavior with regard to corporate social responsibility sharing. Since corporate governance can have a significant impact on CEOs’ behavior in relation to corporate social responsibility, the author recommends firms to improve corporate governance in listed European real estate companies.

Sign in / Sign up

Export Citation Format

Share Document