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Journal of Business Ethics

, Volume 149, Issue 3, pp 707–723 | Cite as

Corporate Social Irresponsibility and Executive Succession: An Empirical Examination

  • Shih-Chi Chiu
  • Mark Sharfman
Article

Abstract

This study contributes to the corporate social responsibility, stakeholder theory, and executive succession literature by examining the effect of corporate social irresponsibility (CSiR) on strategic leadership turnover. We theorize that firms’ CSiR increases the likelihood of executive turnover. We also investigate the nature of succession (non-voluntary or voluntary succession) and successor origin (internal candidate or external candidate) following CSiR. We further examine how the CSiR–CEO succession relationship is moderated by firm visibility to stakeholders and industry dynamism. Our results, based on a dataset of 248 U.S. public firms between 2001 and 2008, provide evidence that firms’ CSiR affects what is conventionally seen as primarily a market-driven decision on executive turnover, especially when firms operate in a more dynamic industry. Research contributions and implications are discussed.

Keywords

Corporate social responsibility Executive turnover Chief executive officer Succession Firm visibility Dynamism Dismissal Successor origin 

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© Springer Science+Business Media Dordrecht 2016

Authors and Affiliations

  1. 1.Division of Strategy, Management & Organization, Nanyang Business SchoolNanyang Technological UniversitySingaporeSingapore
  2. 2.Michael F. Price College of Business, Division of ManagementThe University of OklahomaNormanUSA

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