The impact of ceo's personal characteristics on corporate social responsibility: evidence from Bangladesh

Main Article Content

Mir Md Nazrul Islam
Dejun Wu
Muhammad Usman
Muhammad Imran Nazir

Abstract

Purpose: Advanced CSR research is still in the context of developed countries. Very limited research is available in the CSR system of developing countries such as Bangladesh. Specifically, this paper examines the impact of CEOs personal characteristics on CSR among the public listed company in Bangladesh.

Theoretical Framework: This study also focuses on six firm characteristics firm size, profitability board size, firm leverage, sales and cash.

Design/Methodology/Approach: Using ordinary least square (OLS) regression analysis on 100 public listed firms at Dhaka stock exchange (DSE) and Chittagong stock exchange (CSE) in Bangladesh.

Originality/Value: this study provides new evidence on the relationship between CEO Characteristics and corporate social responsibility in Bangladesh.

Findings: The results show that CEO's impressive positive and rationally significant, which means male is better than women, corporate strategy is better than women in their strategy. One of the most important reasons for education because education also results CEO business education positive and significant, which ultimately affects the organization. The Chief Executive Officer of the organization is an important part of religion and its religion, so that the religion of CEO is Islam and Christian, then he will have more impact on the social welfare organization. The variability of CEO's religion (Islam and Christian) is positive, which affects the company's social welfare, which ultimately increases the company's value.

Downloads

Download data is not yet available.

Metrics

Metrics Loading ...

Article Details

Section
Articles

References

Abdullah, W. N., & Said, R. (2018). The Influence of Corporate Governance and Human Governance towards Corporate Financial Crime: A Conceptual Paper. In Redefining Corporate Social Responsibility (pp. 193-215). Emerald Publishing Limited.

Ali, A., Li, N., & Zhang, W. (2015). Managers' career concerns and asymmetric disclosure of bad versus good news. Working Paper, University of Texas at Dallas.

Ali, M. M., Ibrahim, M. K., Mohammad, R., Zain, M. M., & Alwi, M. R. (2009), Malaysia: Value Relevance of Accounting Numbers. Global Practices of Corporate Social Responsibility.

Alshareef, M. N. Z. & Sandhu, K. (2015). Integrating Corporate Social Responsibility (CSR) into Corporate Governance Structure: The Effect of Board Diversity and Roles-A Case Study of Saudi Arabia. International Journal of Business and Management, 10(7), 1–16.

Angelidis, J., & Ibrahim, N. (2004). An Exploratory Study of the Impact of Degree of Religiousness Upon an Individual’s Corporate Social Responsiveness Orientation, Journal of Business Ethics, 51(2), 119 128.

Borkowski, S. C., & Ugras, Y. J. (1998). Business Students and Ethics: A Meta-Analysis. Journal of Business Ethics, 17, 1117-1127.

Brammer, S., & Millington, A. (2005). corporate reputation and philanthropy: An empirical analysis. Journal of Business Ethics, 61(1), 29–44.

Calkins, M. (2000). Recovering Religion’s Prophetic Voice for Business Ethics, Journal of Business Ethics, 23, 339–352.

Campbell, J. (2007). Why would corporations behave in socially responsible ways? An institutional theory of corporate social responsibility. Academy of Management Review, 32, 946–967.

Carroll, A. B., & Brown, J. A. (2018). Corporate social responsibility: A review of current concepts, research, and issues. In Corporate Social Responsibility (pp. 39-69). Emerald Publishing Limited.

Clarkson, P. M., Li, Y., Richardson, G. D., & Vasvari, F. P. (2008). Revisiting the relation between environmental performance and environmental disclosure: an empirical analysis. Accounting, Organizations and Society, 33(3), 303–327.

Creswell, J. W. (2014) Research Design: qualitative, quantitative and mixed methods, 4th Edition, Croydon: SAGE Publications Inc.

Datta, D. K., Rajagopalan, N., & Zhang, Y. (2003). New CEO openness to change and strategic persistence: The moderating role of industry characteristics. British Journal of Management. Https://doi.org/10.1111/1467-8551.00268.

Davis, K. (1975). Business and Society: Environment and Responsibility, 3rd Edition, McGraw-Hill Book Company, NY.

Donaldson, T., & Preston, L. E. (1995). The stakeholder theory of the corporation: Concepts, evidence, and implications. Academy of management Review, 20(1), 65-91.

Epstein, E. M. (2002). Religion and Business – The Critical Role of Religious Traditions in Management Education, Journal of Business Ethics, 38, 91–96.

Fabrizi, M., Mallin, C., & Michelon, G. (2014). The role of CEO’s personal incentives in driving corporate social responsibility. Journal of Business Ethics, 124(2), 311-326.

Frank, B. & Schlutz, G. (2000). Does Economics Make Citizens Corrupt? Journal of Economic Behavior and Organization, 43, 101-113.

Ge, W., & Liu, M. (2015). Corporate social responsibility and the cost of corporate bonds. Journal of Accounting and Public Policy, 34(6), 597-624.

González-Rodríguez, M. R., Díaz-Fernández, M. C., & Simonetti, B. (2015). The social, economic and environmental dimensions of corporate social responsibility: The role played by consumers and potential entrepreneurs. International Business Review, 24(5), 836-848.

Graafland, J., Kaptein, M. & Mazereeuw, C. (2007). Conceptions of God, Normative Convictions, and Socially Responsible Business Conduct: An Explorative Study among Executives, Business and Society, 46, 331–369.

Gupta, A., Briscoe, F., & Hambrick, D. C. (2017). Red, blue, and purple firms: Organizational political ideology and corporate social responsibility. Strategic Management Journal, 38, 1018-1040

Haniffa, R. M., & Cooke, T. E, (2005). The impact of culture and governance on corporate social reporting. Journal of Accounting and Public Policy, 24(5), 391-430. DOI: https://doi.org/10.1016/j.jaccpubpol.2005.06.001.

Hambrick D. (2007). Upper Echelons theory: an update. Academy of Management Review, 32, 334–343.

Hambrick, D. C., & Mason, P. A. (1984), Upper Echelons: The Organization as a Reflection of Its Top Managers. The Academy of Management Review, 9(2), 193–206.

Hitt, M. A., & Tyler, B. B. (1991). Strategic decision models: Integrating different perspectives. Strategic Management Journal, 12(5), 327-351.

Inoue, Y., & Lee, S. (2011). Effects of different dimensions of corporate social responsibility on corporate financial performance in tourism related industries. Tourism Management, 32(4), 790-804.

Jiraporn, P., Leelalai, V., & Tong, S. (2016). The effect of managerial ability on dividend policy: How do talented managers view dividend payouts? Applied Economics Letters, 23(12), 857–862. https://doi.org/10.1080/ 13504851.2015.1114572.

Jones, T. (1995). Instrumental Stakeholders Theory: A Synthesis of Ethics and Economics. Academy of Management Review, 20(2), 404-437.

Kang, J. (2016). Labor market evaluation versus legacy conservation: What factors determine retiring CEOs’ decisions about long-term investment? Strategic Management Journal, 37, 389-405.

Kotler, P., & Lee, N. (2005). Corporate social responsibility. Hoboken, NJ: Wiley. Lantos, G., 2002. The ethicality of altruistic corporate social responsibility. Journal of consumer marketing, 19(3), 205–230.

Kuhn, J., (1998). Emotion as well as reason: getting students beyond "Interpersonal Accountability". Journal of Business Ethics, 17, 295-308.

Lee, W. S., Sun, K. A., & Moon, J. (2018). Application of upper echelon theory for corporate social responsibility dimensions: Evidence from the restaurant industry. Journal of Quality Assurance in Hospitality & Tourism, 19(3), 387-414.

Loi, R., Lam, L. W., & Chan, K. W. (2012). Coping with Job Insecurity: The Role of Procedural Justice, Ethical Leadership and Power Distance Orientation. Journal of Business Ethics. Https://doi.org/10.1007/s10551-011-1095-3.

Manner, M. H. (2010). The impact of CEO characteristics on corporate social performance. Journal of Business Ethics, 93(1), 53-72.

Matten, D., & Moon, J. (2008). Implicit and explicit CSR: A conceptual framework for a comparative understanding of corporate social responsibility. Academy of Management Review, 33, 404–424.

Maxwell, J. (2013) Qualitative Research Design: An Interactive Approach, 3rd Edition, and USA: SAGE Publications Inc.

McCarthy, S., Oliver, B., & Song, S. (2017). Corporate social responsibility and CEO confidence. Journal of Banking & Finance, 75, 280-291.

Petrenko, O. V., Aime, F., Ridge, J., & Hill, A. (2016). Corporate social responsibility or CEO narcissism? CSR motivations and organizational performance. Strategic Management Journal, 37, 262-279.

Porter, M. E., & Kramer, M. R. (2006). The link between competitive advantage and corporate social responsibility. Harvard business review, 84(12), 78–92.

Quazi, A. M. (2003). Identifying the Determinants of Corporate Managers' Perceived Social Obligations. Management Decision, 41(9), 822-831.

Rivera, J. & De Leon, P. (2005). C.E.Os. and Voluntary Environmental Performance: Costa Rica's Certification for Sustainable Tourism. Policy Science, 38, 107-127.

Shahab, Y., Ntim, C. G., Chen, Y., Ullah, F., Li, H. X., & Ye, Z. (2019). Chief executive officer attributes, sustainable performance, environmental performance, and environmental reporting: New insights from upper echelons perspective. Business Strategy and the Environment.

Sitthipongpanich, T., & Polsiri, P. (2015). Do CEO and board characteristics matter? A study of Thai family firms. Journal of Family Business Strategy, 6(2), 119-129.

Tang, Y., Qian, C., Chen, G., & Shen, R. (2015). How CEO hubris affects corporate social (ir)responsibility. Strategic Management Journal, 36, 1338-1357.

Waldman, D. A., de Luque, M. S., Washburn, N., & House, R. J. (2006). Cultural and Leadership Predictors of Corporate Social Responsibility Values of Top Management: a GLOBE Study of 15 Countries. Journal of International Business Studies, 37, 823-837.

Waldman, D. A., Siegel, D. S., & Javidan, M. (2006). Components of CEO transformational leadership and corporate social responsibility. Journal of Management Studies, 43, 1703–1725.

Wan, Y., Yu, S., Huang, J., Yang, J., & Tsai, C. (2008). Using Field Server. Automation Integration for Taiwan Country-Chicken Farm Management Using Field Server.

Weaver, G. R. & Agle, B. R. (2002). Religiosity and Ethical Behavior in Organizations: A Symbolic Interactionist Perspective, Academy of Management Review, 27(1), 77–97.

Wowak, A. J., Mannor, M. J., Arrfelt, M., & McNamara, G. (2016). Earthquake or glacier? How CEO charisma manifests in firm strategy over time. Strategic Management Journal, 37, 586-603.

Yin, R. K. (2009). Case Study Research: Design and Methods, 4th Edition, USA: SAGE Publications Inc.

Yin, R. K. (2011). Qualitative Research from Start to Finish, New York: The Guilford Press.

Yuan, Y., Tian, G., Lu, L. Y., & Yu, Y. (2017). CEO ability and corporate social responsibility. Journal of Business Ethics, 1–21. https://doi.org/10.1007/s10551‐017‐3622‐3.

Zu, L., & Song, L. (2009). Determinants of Managerial Values on Corporate Social Responsibility: Evidence from China. Journal of Business Ethics, 88, 105-117.