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Erschienen in: Journal of Business Ethics 4/2018

16.08.2017 | Original Paper

Unpacking Functional Experience Complementarities in Senior Leaders’ Influences on CSR Strategy: A CEO–Top Management Team Approach

verfasst von: Marko Reimer, Sebastiaan Van Doorn, Mariano L. M. Heyden

Erschienen in: Journal of Business Ethics | Ausgabe 4/2018

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Abstract

In this study, we examine the influence of senior leadership on firms’ corporate social responsibility (CSR). We integrate upper echelons research that has investigated either the influence of the CEO or the top management team (TMT) on CSR. We contend that functional experience complementarity between CEOs and TMTs in formulating and implementing CSR strategy may underlie differentiated strategies in CSR. We find that when CEOs who have predominant experience in output functions are complemented by TMTs with a lower proportion of members who have experience in output functions, there is a pronounced effect on the community, product, and diversity dimensions of CSR. In turn, when output-oriented CEOs are complemented by output-oriented TMTs, we observe an effect on the employee relations dimension of CSR. Interestingly, we find no influence of CEO-TMT complementarity on the environment dimension of CSR. In general, our empirical results support the relevance of the interaction between CEOs and their TMTs in defining their firms’ CSR profile.

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Zurück zum Zitat Hess, D., Rogovsky, N., & Dunfee, T. W. (2002). The next wave of corporate community involvement: Corporate social initiatives. California Management Review, 44(2), 110–125. Hess, D., Rogovsky, N., & Dunfee, T. W. (2002). The next wave of corporate community involvement: Corporate social initiatives. California Management Review, 44(2), 110–125.
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Zurück zum Zitat Hillman, A. J., & Keim, G. D. (2001). Shareholder value, stakeholder management, and social issues: What’s the bottom line? Strategic Management Journal, 22(2), 125–139. Hillman, A. J., & Keim, G. D. (2001). Shareholder value, stakeholder management, and social issues: What’s the bottom line? Strategic Management Journal, 22(2), 125–139.
Zurück zum Zitat Hoque, K. (1999). Human resource management and performance in the UK hotel industry. British Journal of Industrial Relations, 37(3), 419–443. Hoque, K. (1999). Human resource management and performance in the UK hotel industry. British Journal of Industrial Relations, 37(3), 419–443.
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Zurück zum Zitat Kaynak, H. (2003). The relationship between total quality management practices and their effects on firm performance. Journal of Operations Management, 21(4), 405–435. Kaynak, H. (2003). The relationship between total quality management practices and their effects on firm performance. Journal of Operations Management, 21(4), 405–435.
Zurück zum Zitat Khan, A., Muttakin, M. B., & Siddiqui, J. (2013). Corporate governance and corporate social responsibility disclosures: Evidence from an emerging economy. Journal of Business Ethics, 114(2), 207–223. Khan, A., Muttakin, M. B., & Siddiqui, J. (2013). Corporate governance and corporate social responsibility disclosures: Evidence from an emerging economy. Journal of Business Ethics, 114(2), 207–223.
Zurück zum Zitat Kilkenny, M., Nalbarte, L., & Besser, T. (1999). Reciprocated community support and small town-small business success. Entrepreneurship & Regional Development, 11(3), 231–246. Kilkenny, M., Nalbarte, L., & Besser, T. (1999). Reciprocated community support and small town-small business success. Entrepreneurship & Regional Development, 11(3), 231–246.
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Zurück zum Zitat Klimoski, R. J., & Koles, K. L. K. (2001). The chief executive officer and top management team interface. In S. J. Zaccaro & R. J. Klimoski (Eds.), The nature of organizational leadership: Understanding the performance imperatives confronting today’s leaders (pp. 219–269). San Francisco: Jossey-Bass. Klimoski, R. J., & Koles, K. L. K. (2001). The chief executive officer and top management team interface. In S. J. Zaccaro & R. J. Klimoski (Eds.), The nature of organizational leadership: Understanding the performance imperatives confronting today’s leaders (pp. 219–269). San Francisco: Jossey-Bass.
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Zurück zum Zitat Krause, R., Semadeni, M., & Cannella, A. A. (2014). CEO duality: A review and research agenda. Journal of Management, 40(1), 256–286. Krause, R., Semadeni, M., & Cannella, A. A. (2014). CEO duality: A review and research agenda. Journal of Management, 40(1), 256–286.
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Zurück zum Zitat Lim, A., & Tsutsui, K. (2012). Globalization and commitment in corporate social responsibility cross-national analyses of institutional and political-economy effects. American Sociological Review, 77(1), 69–98. Lim, A., & Tsutsui, K. (2012). Globalization and commitment in corporate social responsibility cross-national analyses of institutional and political-economy effects. American Sociological Review, 77(1), 69–98.
Zurück zum Zitat Linthicum, C., Reitenga, A. L., & Sanchez, J. M. (2010). Social responsibility and corporate reputation: The case of the Arthur Andersen Enron audit failure. Journal of Accounting and Public Policy, 29(2), 160–176. Linthicum, C., Reitenga, A. L., & Sanchez, J. M. (2010). Social responsibility and corporate reputation: The case of the Arthur Andersen Enron audit failure. Journal of Accounting and Public Policy, 29(2), 160–176.
Zurück zum Zitat Luo, X., & Bhattacharya, C. B. (2006). Corporate social responsibility, customer satisfaction, and market value. Journal of Marketing, 70(4), 1–18. Luo, X., & Bhattacharya, C. B. (2006). Corporate social responsibility, customer satisfaction, and market value. Journal of Marketing, 70(4), 1–18.
Zurück zum Zitat Maak, T., Pless, N. M., & Voegtlin, C. (2016). Business statesman or shareholder advocate? CEO responsible leadership styles and the micro-foundations of political CSR. Journal of Management Studies, 53(3), 463–493. Maak, T., Pless, N. M., & Voegtlin, C. (2016). Business statesman or shareholder advocate? CEO responsible leadership styles and the micro-foundations of political CSR. Journal of Management Studies, 53(3), 463–493.
Zurück zum Zitat Mandhachitara, R., & Poolthong, Y. (2011). A model of customer loyalty and corporate social responsibility. Journal of Services Marketing, 25(2), 122–133. Mandhachitara, R., & Poolthong, Y. (2011). A model of customer loyalty and corporate social responsibility. Journal of Services Marketing, 25(2), 122–133.
Zurück zum Zitat Manner, M. H. (2010). The impact of CEO characteristics on corporate social performance. Journal of Business Ethics, 93(1), 53–72. Manner, M. H. (2010). The impact of CEO characteristics on corporate social performance. Journal of Business Ethics, 93(1), 53–72.
Zurück zum Zitat Marquis, C., Glynn, M. A., & Davis, G. F. (2007). Community isomorphism and corporate social action. Academy of Management Review, 32(3), 925–945. Marquis, C., Glynn, M. A., & Davis, G. F. (2007). Community isomorphism and corporate social action. Academy of Management Review, 32(3), 925–945.
Zurück zum Zitat Matten, D., & Moon, J. (2008). “Implicit” and “explicit” CSR: A conceptual framework for a comparative understanding of corporate social responsibility. Academy of Management Review, 33(2), 404–424. Matten, D., & Moon, J. (2008). “Implicit” and “explicit” CSR: A conceptual framework for a comparative understanding of corporate social responsibility. Academy of Management Review, 33(2), 404–424.
Zurück zum Zitat Mazutis, D. D. (2013). The CEO effect a longitudinal, multilevel analysis of the relationship between executive orientation and corporate social strategy. Business and Society, 52(4), 631–648. Mazutis, D. D. (2013). The CEO effect a longitudinal, multilevel analysis of the relationship between executive orientation and corporate social strategy. Business and Society, 52(4), 631–648.
Zurück zum Zitat McCarty Kilian, C., Hukai, D., & Elizabeth McCarty, C. (2005). Building diversity in the pipeline to corporate leadership. Journal of Management Development, 24(2), 155–168. McCarty Kilian, C., Hukai, D., & Elizabeth McCarty, C. (2005). Building diversity in the pipeline to corporate leadership. Journal of Management Development, 24(2), 155–168.
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Zurück zum Zitat Mirvis, P. (2012). Employee engagement and CSR. California Management Review, 54(4), 93–117. Mirvis, P. (2012). Employee engagement and CSR. California Management Review, 54(4), 93–117.
Zurück zum Zitat Mitchell, R. K., Agle, B. R., & Wood, D. J. (1997). Toward a theory of stakeholder identification and salience: Defining the principle of who and what really counts. Academy of Management Review, 22(4), 853–886. Mitchell, R. K., Agle, B. R., & Wood, D. J. (1997). Toward a theory of stakeholder identification and salience: Defining the principle of who and what really counts. Academy of Management Review, 22(4), 853–886.
Zurück zum Zitat Oikonomou, I., Brooks, C., & Pavelin, S. (2012). The impact of corporate social performance on financial risk and utility: A longitudinal analysis. Financial Management, 41(2), 483–515. Oikonomou, I., Brooks, C., & Pavelin, S. (2012). The impact of corporate social performance on financial risk and utility: A longitudinal analysis. Financial Management, 41(2), 483–515.
Zurück zum Zitat Olie, R., van Iterson, A., & Simsek, Z. (2012). When Do CEOs versus top management teams matter in explaining strategic decision-making processes? International Studies of Management and Organization, 42(4), 86–105. Olie, R., van Iterson, A., & Simsek, Z. (2012). When Do CEOs versus top management teams matter in explaining strategic decision-making processes? International Studies of Management and Organization, 42(4), 86–105.
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Zurück zum Zitat Palazzo, G., & Richter, U. (2005). CSR business as usual? The case of the tobacco industry. Journal of Business Ethics, 61(4), 387–401. Palazzo, G., & Richter, U. (2005). CSR business as usual? The case of the tobacco industry. Journal of Business Ethics, 61(4), 387–401.
Zurück zum Zitat Papalexandris, N., & Galanaki, E. (2009). Leadership’s impact on employee engagement: Differences among entrepreneurs and professional CEOs. Leadership & Organization Development Journal, 30(4), 365–385. Papalexandris, N., & Galanaki, E. (2009). Leadership’s impact on employee engagement: Differences among entrepreneurs and professional CEOs. Leadership & Organization Development Journal, 30(4), 365–385.
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Zurück zum Zitat Pedersen, E. R. (2006). Making corporate social responsibility (CSR) operable: How companies translate stakeholder dialogue into practice. Business and Society Review, 111(2), 137–163. Pedersen, E. R. (2006). Making corporate social responsibility (CSR) operable: How companies translate stakeholder dialogue into practice. Business and Society Review, 111(2), 137–163.
Zurück zum Zitat Pelled, L., Ledford, G. E., & Mohrman, S. (1999). Demographic dissimilarity and workplace inclusion. Journal of Management Studies, 36(7), 1013–1031. Pelled, L., Ledford, G. E., & Mohrman, S. (1999). Demographic dissimilarity and workplace inclusion. Journal of Management Studies, 36(7), 1013–1031.
Zurück zum Zitat Pendleton, A. (2006). Incentives, monitoring, and employee stock ownership plans: New evidence and interpretations. Industrial Relations: A Journal of Economy and Society, 45(4), 753–777. Pendleton, A. (2006). Incentives, monitoring, and employee stock ownership plans: New evidence and interpretations. Industrial Relations: A Journal of Economy and Society, 45(4), 753–777.
Zurück zum Zitat Petrenko, O. V., Aime, F., Ridge, J., & Hill, A. (2016). Corporate social responsibility or CEO narcissism? CSR motivations and organizational performance. Strategic Management Journal, 37(2), 262–279. Petrenko, O. V., Aime, F., Ridge, J., & Hill, A. (2016). Corporate social responsibility or CEO narcissism? CSR motivations and organizational performance. Strategic Management Journal, 37(2), 262–279.
Zurück zum Zitat Phillips, L. W., Chang, D. R., & Buzzell, R. D. (1983). Product quality, cost position and business performance: A test of some key hypotheses. Journal of Marketing, 47(2), 26–43. Phillips, L. W., Chang, D. R., & Buzzell, R. D. (1983). Product quality, cost position and business performance: A test of some key hypotheses. Journal of Marketing, 47(2), 26–43.
Zurück zum Zitat Porter, M. E., & Kramer, M. R. (1999). Philanthropy’s new agenda: Creating value. Harvard Business Review, 77, 121–131. Porter, M. E., & Kramer, M. R. (1999). Philanthropy’s new agenda: Creating value. Harvard Business Review, 77, 121–131.
Zurück zum Zitat Quigley, T. J., & Graffin, S. D. (2016). Reaffirming the CEO effect is significant and much larger than chance: A comment on Fitza (2014). Strategic Management Journal, 38(3), 793–801. Quigley, T. J., & Graffin, S. D. (2016). Reaffirming the CEO effect is significant and much larger than chance: A comment on Fitza (2014). Strategic Management Journal, 38(3), 793–801.
Zurück zum Zitat Quigley, T. J., & Hambrick, D. C. (2012). When the former CEO stays on as board chair: Effects on successor discretion, strategic change, and performance. Strategic Management Journal, 33(7), 834–859. Quigley, T. J., & Hambrick, D. C. (2012). When the former CEO stays on as board chair: Effects on successor discretion, strategic change, and performance. Strategic Management Journal, 33(7), 834–859.
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Zurück zum Zitat Rathert, N. (2016). Strategies of legitimation: MNEs and the adoption of CSR in response to host-country institutions. Journal of International Business Studies, 47(7), 858–879. Rathert, N. (2016). Strategies of legitimation: MNEs and the adoption of CSR in response to host-country institutions. Journal of International Business Studies, 47(7), 858–879.
Zurück zum Zitat Reiche, D., & Bechberger, M. (2004). Policy differences in the promotion of renewable energies in the EU member states. Energy Policy, 32(7), 843–849. Reiche, D., & Bechberger, M. (2004). Policy differences in the promotion of renewable energies in the EU member states. Energy Policy, 32(7), 843–849.
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Zurück zum Zitat Richard, O. C. (2000). Racial diversity, business strategy, and firm performance: A resource-based view. Academy of Management Journal, 43(2), 164–177. Richard, O. C. (2000). Racial diversity, business strategy, and firm performance: A resource-based view. Academy of Management Journal, 43(2), 164–177.
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Zurück zum Zitat Ridge, J. W., Aime, F., & White, M. A. (2015). When much more of a difference makes a difference: Social comparison and tournaments in the CEO’s top team. Strategic Management Journal, 36(4), 618–636. Ridge, J. W., Aime, F., & White, M. A. (2015). When much more of a difference makes a difference: Social comparison and tournaments in the CEO’s top team. Strategic Management Journal, 36(4), 618–636.
Zurück zum Zitat Rosen, S. (1974). Hedonic prices and implicit markets: Product differentiation in pure competition. Journal of Political Economy, 82(1), 34–55. Rosen, S. (1974). Hedonic prices and implicit markets: Product differentiation in pure competition. Journal of Political Economy, 82(1), 34–55.
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Metadaten
Titel
Unpacking Functional Experience Complementarities in Senior Leaders’ Influences on CSR Strategy: A CEO–Top Management Team Approach
verfasst von
Marko Reimer
Sebastiaan Van Doorn
Mariano L. M. Heyden
Publikationsdatum
16.08.2017
Verlag
Springer Netherlands
Erschienen in
Journal of Business Ethics / Ausgabe 4/2018
Print ISSN: 0167-4544
Elektronische ISSN: 1573-0697
DOI
https://doi.org/10.1007/s10551-017-3657-5

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