| ECONOMICS AND MANAGEMENT |
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CEO power, corporate social responsibility, and corporate performance |
| TAO Wenjie, JIN Zhanming |
| School of Economic and Management, Tsinghua University, Beijing 100084, China |
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Abstract The chief executive officer (CEO) plays an irreplaceable role in the corporate social responsibility (CSR) decision-making and implementation process, but the effect of CEO's power relationships on corporate social performance is less mentioned. A-share listed companies who released CSR reports from 2009 to 2011 were studied using the OLS (ordinary least squares) method to test the relationships among CEO power, CSR and corporate finance performance (CFP). The results show that structural power can help CEOs more effectively solve social-environmental problems, but it is not sufficient to improve CFP with the influence of ownership power having opposite effects on CSR and CFP. CEOs with prestige power and expert power can better relate social and business interests. The results show that companies should carefully structure the CEO's power with effective power restrictions to protect the owner's equity and maintain sustainable development.
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| Keywords
corporate social responsibility (CSR)
chief executive officer (CEO) power
strategic synergy
win-win between companies and society
corporate finance performance (CFP)
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Issue Date: 15 December 2015
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2015,
Vol. 55
