
CEO Greed, Corporate Social Responsibility and Organizational Resilience - headalgorithm
https://journals.sagepub.com/doi/10.1177/0149206320902528
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headalgorithm
Abstract:

In this study, we explore how top executives affect the well-being of multiple
stakeholders and long-run organizational outcomes. In the context of the 2008
global financial crisis (GFC), we examine how CEO greed impacts firms’ stance
toward corporate social responsibility (CSR) prior to the onset of the GFC and
how this, in turn, shapes firms’ fate during and after the GFC. We argue that
CEO greed will be negatively associated with CSR, because in their unbridled
pursuit of personal wealth, greedy CEOs are more likely to exhibit myopic
behaviors and neglect investment in CSR. We also adopt a person-pay
interactionist logic to theorize that the willingness of greedy executives to
invest in CSR will be especially sensitive to different types of pay
instruments. Next, we build on recent findings from research on CSR that
suggest that stakeholder engagement is a defining feature of resilient
organizations. We expect that, due to low CSR investment, firms led by greedy
CEOs will experience greater losses in the short run and will take longer time
to recover from the 2008 GFC. For a sample of 301 CEOs of public U.S.
organizations, we analyzed the stock prices and found general support for our
hypotheses.

