Wonsuk Cha, Michael Abebe and Hazel Dadanlar
The purpose of this paper is to explore the relationship between a chief executive officer (CEO)’s personal engagement in broader societal causes (CEO civic engagement) and firm’s…
Abstract
Purpose
The purpose of this paper is to explore the relationship between a chief executive officer (CEO)’s personal engagement in broader societal causes (CEO civic engagement) and firm’s social and environmental performance.
Design/methodology/approach
A theoretical framework was developed based on upper echelons and stakeholder theories to argue that CEOs’ professional background characteristics can be closely related to firm-level social and environmental performance. Hierarchical OLS analysis was conducted using data from 178 large, publicly traded large US firms between 2010 and 2013.
Findings
Overall, the findings suggest that firms led by CEOs with active civic engagement are more likely to support various philanthropic efforts. Additionally, the findings suggest that firms led by civic-minded CEOs are more likely to support an active corporate environmental engagement by investing significant resources in various environmental causes. Contrary to the authors’ predictions, the level of CEO civic engagement was not a significant predictor of firm level community engagement activities.
Research limitations/implications
The findings extend current scholarly work on executive determinants of corporate social performance by highlighting the important role of CEOs’ personal engagement beyond studying CEOs’ demographic characteristics. Specifically, the findings that the CEO-civic engagements lead to higher degrees of corporate philanthropy and environmental performance show that CEOs’ civic engagement can go beyond what is considered symbolic executive actions.
Practical implications
The findings suggest that firms that seek to foster social and environmental performance in a meaningful way should recruit and retain CEOs that have a personal commitment to and engagement in various social and environmental issues and causes.
Originality/value
By empirically examining the effect of CEO civic engagement on corporate philanthropy, community involvement and environmental performance, this paper seeks to contribute to the scholarly conversation on the effects of CEOs in shaping the firm’s social and environmental engagement and addressing external stakeholder concerns.
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Keywords
Earl Yarbrough Jr, Michael Abebe and Hazel Dadanlar
The purpose of this paper is to empirically examine the link between board of director composition and firm performance. Specifically, the paper argues that board political…
Abstract
Purpose
The purpose of this paper is to empirically examine the link between board of director composition and firm performance. Specifically, the paper argues that board political experience influences the firm’s internationalization strategy as directors with significant political experience provide guidance, resources, and network access that enhance the firm’s international presence. The authors also posit that board political connections would be more helpful for firms operating in high-regulation industries.
Design/methodology/approach
The authors tested the predictions using data from 156 large US firms. Data on directors’ background were gathered from SEC proxy filings, while data pertaining to internationalization were obtained from Compustat and Mergent Online databases. Hierarchical moderated regression analysis was employed to empirically test the hypothesized relationships.
Findings
The findings provide strong support for the positive relationship between board political experience and the degree of firm internationalization. Contrary to the authors’ predictions, the level of industry regulation does not seem to significantly affect this relationship.
Research limitations/implications
Firms aggressively pursuing international strategy could benefit from having directors on their board with robust political experience. One of the limitations of the study is that the types of international activities for firms is not specified in the study as it might be in the form of joint-venture capacity, strategic alliances or for firms that might be born-global.
Originality/value
This study makes original contribution to the on-going research on board political activity and firm performance through internationalization strategy. The findings suggest that having directors’ with political experience is an important asset in influencing firm’s corporate strategy.
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Gabriela Flores, M. Fernanda Garcia, Hazel Nguyen, María del Carmen Triana and Christine Choirat
This study investigates the relationship between child gender and a CEO’s top management hiring decisions.
Abstract
Purpose
This study investigates the relationship between child gender and a CEO’s top management hiring decisions.
Design/methodology/approach
Hypotheses were tested using secondary data on 121 S&P 500 male CEOs, their children, and their top management teams.
Findings
Results indicate that child gender is associated with a male CEO’s TMT hiring decisions. Specifically, we find that male CEOs with only daughters were significantly more likely to hire women to their TMTs than male CEOs with only sons and those with both sons and daughters.
Practical implications
This study provides evidence for the roles of familiarity, learning, and empathy in reducing gender biases in selection decisions. Top management hiring decisions have wide implications for organizational settings in general and for the breaking of the glass ceiling in particular.
Social implications
Reducing gender bias in top manager hiring decisions directly relates to the United Nations’ Sustainable Development Goal 5 of achieving gender equality as women are consistently under-represented at the top of organizations across the world.
Originality/value
By focusing on the hiring of top managers, this study includes hiring decisions that directly impact firm operations. To our knowledge, this is the first study to examine the relationship between child gender and executive hiring decisions with a US S&P 500 sample.