Corporate Social Responsibility, CEO Compensation Structure, and Corporate Innovation Activities

Bu-Kyung Choi, Ji-Young Ahn and Myeong-Cheol Choi
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Bu-Kyung Choi: School of Business, Ewha Womans University, 52 Ewhayeodae-gil, Seoul 03760, Korea
Ji-Young Ahn: School of Business, Ewha Womans University, 52 Ewhayeodae-gil, Seoul 03760, Korea
Myeong-Cheol Choi: College of Business, Gachon University, Seongnam 13120, Korea

Sustainability, 2021, vol. 13, issue 23, 1-15

Abstract: This study empirically investigated the economic effect of CSR initiatives on innovation by examining Korean firms. Our primary objective of this study was to explore how a CEO compensation system can affect the CSR-innovation relationship. An integrated model of the impact of CSR on innovation activities was developed through analyzing various CEO compensation components such as structure, type, mix, and distribution. We identified the CEO compensation system that more suitably supports CSR in driving innovation performance improvement, and empirically examined a compensation system that enhances corporate innovation by creating a good alignment with CSR. Using a longitudinal data, we empirically tested the interactive effect of a CSR and compensation system of CEO in Korean publicly traded companies. Our empirical findings concerning the interaction between CSR strategies and CEO compensation schemes hold practical implications for establishing and implementing a suitable human resource system to improve organizational competitiveness.

Keywords: corporate social responsibility; innovation; CEO compensation structure; social exchange; equity (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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