Corporate social responsibility and CEO payfamily firms versus non-family firms

Resumen

With growing attention to corporate social responsibility (CSR), we conduct an indepth investigation of whether organizations reward social performance via CEO pay. We distinguishe two types of CSR (related to internal/external stakeholders) and consider different CEO pay components (cash/equity-based pay). Analyses of 540 non-family and 329 family Chinese listed firms reveal the interesting yet complicated nature of the association between organizational social performance and CEO pay. First, regarding the association between CSR and CEO pay, we find that CSR related to internal stakeholders contributes to CEO cash pay; findings from the detailed analyses respecting the effect of each CSR dimension on CEO cash pay reveal that not all CSR dimensions are significantly linked to CEO cash pay. Further, the comparison between two types of firm (family vs. non-family) regarding the association between CSR performance and CEO pay suggest that CSR (related to internal/external stakeholders) exerts stronger impact on CEO ownership in family firms. Lastly, the results also suggest that family involvement strengthens the impact of CSR (related to internal/external stakeholders) on CEO cash pay. Our research contributes to the strategic management literatures on corporate social responsibility and corporate governance, as well as the entrepreneurship literature on family businesses