Power and responsibility: How different sources of CEO power affect firms' corporate social responsibility practices

Abstract

In 2018, Larry Fink, the CEO of BlackRock, called for the corporate CEOs to prevent short-termism, but to make a "positive contribution to society." In 2019, 180 other CEOs joined Fink in signing a statement on the purpose of corporation to "place customers first and invest in employees and communities" (Ledecky, 2021).

Understanding the link between subsidiary CEOs and corporate social responsibility in emerging markets: Moderating role of social capital

“…As such, it denotes the activities organizations undertake to fulfill and realize social value creation for their relevant stakeholders. Firms engage with CSR initiatives to positively impact societal stakeholders and simultaneously improve their corporate image (Jia et al, 2022; Pan et al, 2022; Souiden et al, 2022). With growing emphasis on increasing challenges societies face, CSR has become a critical issue for firms and society, especially in the 1990s, and still upholds its importance (Jia et al, 2022; Souiden et al, 2022).…”

“…Firms engage with CSR initiatives to positively impact societal stakeholders and simultaneously improve their corporate image (Jia et al, 2022; Pan et al, 2022; Souiden et al, 2022). With growing emphasis on increasing challenges societies face, CSR has become a critical issue for firms and society, especially in the 1990s, and still upholds its importance (Jia et al, 2022; Souiden et al, 2022). Despite growing interest in CSR, it is becoming increasingly evident that its application and full realization are challenging due to the tensions and paradoxes involved in realizing CSR (Bento et al, 2017; De Colle et al, 2014; Thakhathi, 2021).…”

Women and CSR budgeting and spending: Does ownership enhance their CSR role?

“…Power theory explains that power is critical for strategic decision‐making in corporate businesses, and individuals with relative power can influence organizational outcomes (Finkelstein, 1992; Jia et al, 2022). This theory suggests that individuals can obtain power from a variety of sources, including structural, ownership, expertise, and prestige; however, the most influential sources of power within the organizational structure are structural and ownership (Cruz et al, 2019; Finkelstein, 1992; Jia et al, 2022). Given this theory, women can influence strategic choices more when holding firm shares (Byron & Post, 2016; Ramon‐Llorens et al, 2021).…”

“…Women are social committers, and their power in corporate business has become more essential to impact CSR activities. According to Liu et al (2020) and Jia et al (2022), power enables people with higher communal qualities and values to engage in more socially responsible behavior. As a result of the power of her ownership, a woman with a shareholding position has more opportunities to influence CSR activities.…”

“…Strategically, researchers have reported that CSR is a distinct practice that can be used as a strategic policy to yield short‐ and long‐run advantages (Bruna & Nicolò, 2020; Carroll, 2021). Growing research on CSR describes how CSR initiatives protect firms during economic downturns (e.g., the 2008 financial crisis and COVID‐19) because stakeholders support these firms during that time (Cornea et al, 2021; Lins et al, 2017; Poursoleyman et al, 2022; Qiu et al, 2021), and a large number of studies have discovered drivers that make firms more socially responsible (Bear et al, 2010; Jia et al, 2022; Lee et al, 2013; Ma et al, 2020; Seckin‐Halac et al, 2021; Walls et al, 2012).…”