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Corporate Social Irresponsibility and Executive Succession: An Empirical Examination

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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.

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Authors and Affiliations

  1. Division of Strategy, Management & Organization, Nanyang Business School, Nanyang Technological University, S3-B1B-70, 50 Nanyang Avenue, Singapore, 639798, Singapore

    Shih-Chi Chiu

  2. Michael F. Price College of Business, Division of Management, The University of Oklahoma, 307 W. Brooks, Room 206, Norman, OK, 73019-0450, USA

    Mark Sharfman

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Chiu, SC., Sharfman, M. Corporate Social Irresponsibility and Executive Succession: An Empirical Examination. J Bus Ethics 149, 707–723 (2018). https://doi.org/10.1007/s10551-016-3089-7

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