Effects of CEOs’ Negative Traits on Corporate Social Responsibility

Jae Kyu Myung, Yoon Hyuk Choi and Jong Dae Kim
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Jae Kyu Myung: College of Business Administration, Inha University, Incheon 22212, South Korea
Yoon Hyuk Choi: College of Business Administration, Inha University, Incheon 22212, South Korea
Jong Dae Kim: College of Business Administration, Inha University, Incheon 22212, South Korea

Sustainability, 2017, vol. 9, issue 4, 1-21

Abstract: The dark triad, composed of Machiavellianism, psychopathy and narcissism, refers to negative personality traits, which may influence business processes. While negative traits could be an important factor explaining the relationship between a CEO’s immoral and unethical behavior and corporate social responsibility (CSR), there has been minimal research focusing on this relationship. This paper thus attempts to investigate how a CEO exhibiting these negative traits affects CSR, and if an employee’s perception of ethics and social responsibility would mediate the relationship. In addition, this paper considers the moderating effects of an individual performance-based compensation system (IPBCS) between employee’s CSR perception and CSR activities. The data are collected through a survey conducted on 165 employees (companies) in twelve industries. The regression result indicates an inverse relationship between the negative traits of a CEO and an employee’s perception of ethics and social responsibility and CSR activities, and the mediating effect of the perception in the relationship between the negative traits and CSR activities. It also indicates that an IPBCS moderates the relationship between CSR perception and activities. Implications for the study, future research directions, and management approach are discussed.

Keywords: CEO; compensation system; CSR; dark triad; Machiavellianism; narcissism; negative traits; psychopathy (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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