Skip to main content
SpringerLink
Log in

CEO International Assignment Experience and Corporate Social Performance

  • Published:
Journal of Business Ethics Aims and scope Submit manuscript

Abstract

Research suggests that international assignment experience enhances awareness of societal stakeholders, influences personal values, and provides rare and valuable resources. Based on these arguments, we hypothesize that CEO international assignment experience will lead to increased corporate social performance (CSP) and will be moderated by the CEO’s functional background. Using a sample of 393 CEOs of S&P 500 companies and three independent data sources, we find that CEO international assignment experience is positively related to CSP and is significantly moderated by the CEO’s functional background. Specifically, CEOs with international assignment experience and an output functional background (e.g., marketing and sales) are positively associated with greater CSP.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Agle, B. R., Mitchell, R. K., & Sonnenfeld, J. A. (1999). Who Matters to CEOs? An Investigation of Stakeholder Attributes and Salience, Corporate Performance and CEO Values. Academy of Management Journal, 42(5), 507–525. doi:10.2307/256973.

    Article  Google Scholar 

  • Athanassiou, N., and Nigh, D. (2000). Internationalization, Tacit Knowledge and the Top Management Teams of MNCs. Journal of International Business Studies, 31(3), 471–487. doi:10.1057/palgrave.jibs.8490917.

    Article  Google Scholar 

  • Berman, S. L., Wicks, A. C., Koth, S., and Jones, T. M. (1999). Does Stakeholder Orientation Matter? The Relationship between Stakeholder Management Models and Firm Financial Performance. Academy of Management Journal, 42(5), 488–506. doi:10.2307/256972.

    Article  Google Scholar 

  • Beyer, J. M., Chattopadhyay, P., George, E., Glick, W. H., and Pugliese, D. (1997). The Selective Perception of Managers Revisited. Academy of Management Journal, 40(3), 716–737. doi:10.2307/257060.

    Article  Google Scholar 

  • Black, H. T. and D. L. Duhon: 2006, ‹Assessing the Impact of Business Study Abroad Programs on Cultural Awareness and Personal Development’, Journal of Education for Business 81(3), 140–144.

    Google Scholar 

  • Brown, T. J., and Dacin, P. A. (1997). The Company and the Product: Corporate Associations and Consumers Product Responses. Journal of Marketing, 61(1), 68–84. doi:10.2307/1252190.

    Article  Google Scholar 

  • Carlson, J. S., and Widaman, K. F. (1988). The Effects of Study Abroad During College on Attitudes toward Other Cultures. International Journal of Intercultural Relations, 12, 1–18. doi:10.1016/0147-1767(88)90003-X.

    Article  Google Scholar 

  • Carpenter, M. A., and Fredrickson, J. W. (2001). Top Management Teams, Global Strategic Posture, and the Moderating Role of Uncertainty. Academy of Management Journal, 44(3), 533–545. doi:10.2307/3069368.

    Article  Google Scholar 

  • Carpenter, M. A., Geletkanycz, M. A., and Sanders, W. G. (2004). Upper Echelons Research Revisited: Antecedents, Elements, and Consequences of Top Management Team Composition. Journal of Management, 30(6), 749–778. doi:10.1016/j.jm.2004.06.001.

    Google Scholar 

  • Carpenter, M. A., Pollock, T. G., and Leary, M. M. (2003). Testing a Model of Reasoned Risk-taking: Governance, the Experience of Principals and Agents, and Global Strategy in High-technology IPO Firms. Strategic Management Journal, 24(9), 803–820. doi:10.1002/smj.338.

    Article  Google Scholar 

  • Carpenter, M. A., W. G. Sanders and H. B. Gregersen: 2000, `International Assignment Experience at the Top can Make a Bottom-Line Difference', Human Resource Management 39(2), 277–285. doi:10.1002/1099-050X(200022/23)39:2/3<277::AID-HRM15 >3.0.CO;2-0.

  • Carpenter, M. A., Sanders, W. G., and Gregersen, H. B. (2001). Bundling Human Capital with Organizational Context: The Impact of International Assignment Experience on Multinational Firm Performance and CEO Pay. Academy of Management Journal, 44(3), 493–511. doi:10.2307/3069366.

    Article  Google Scholar 

  • Chieffo, L. and L. Griffiths. (2004). Large-Scale Assessment of Student Attitudes after a Short-term Study Abroad Program. Frontiers: The International Journal of Study Abroad, 10, 165–177.

    Google Scholar 

  • Coombs, J. E., and Gilley, M. K. (2005). Stakeholder Management as a Predictor of CEO Compensation: Main Effects and Interactions with Financial Performance. Strategic Management Journal, 26, 827–840. doi:10.1002/smj.476.

    Article  Google Scholar 

  • Daily, C. M., S. T. Certo and D. R. Dalton: 2000, `International Experience in the Executive Suite: The Path to Prosperity?', Strategic Management Journal 21(4), 515–523. doi:10.1002/(SICI)1097-0266(200004)21:4 <515::AID-SMJ92>3.0.CO;2-1.

  • Dwyer, M. M.: 2004, ‹Charting the Impact of Studying Abroad’, International Educator 13(1), 14–20.

    Google Scholar 

  • Edstrom, A., and Galbraith, J. (1977). Transfer of Managers as a Coordination and Control Strategy in Multinational Organizations. Administrative Science Quarterly, 22, 248–263. doi:10.2307/2391959.

    Article  Google Scholar 

  • Finkelstein, S., and Hambrick, D. C. 1996. Strategic leadership: Top executives and their effects on organizations. Minneapolis: West Publishing.

    Google Scholar 

  • Graves, S. B., and Waddock, S. A. (1994). Institutional Owners and Corporate Social Performance. Academy of Management Journal, 37(4), 1034–1046. doi:10.2307/256611.

    Article  Google Scholar 

  • Gregersen, H. B., Morrison, A. J., and Black, J. S. (1998). Developing Leaders for the Global Frontier. Sloan Management Review, 40(1), 21–32.

    Google Scholar 

  • Gunz, H. P., and Jalland, R. M. (1996). Managerial Careers and Business Strategies. Academy of Management Review, 21(3), 718–757. doi:10.2307/259000.

    Article  Google Scholar 

  • Gupta, A. K., and Govindarajan, V. (1984). Business Unit Strategy, Managerial Characteristics, and Business Unit Effectiveness at Strategy Implementation. Academy of Management Journal, 27(1), 25–42. doi:10.2307/255955.

    Article  Google Scholar 

  • Hambrick, D. C. (2007). Upper Echelons Theory: An update. Academy of Management Review, 32(2), 334–343.

    Article  Google Scholar 

  • Hambrick, D. C., and Mason, P. A. (1984). Upper Echelons: The Organization as a Reflection of its Top Managers. Academy of Management Review, 9(2), 193–206. doi:10.2307/258434.

    Article  Google Scholar 

  • Handelman, J. M., and Arnold, S. J. (1999). The Role of Marketing Actions with a Social Dimension: Appeals to the Institutional Environment. Journal of Marketing, 63, 33–48. doi:10.2307/1251774.

    Article  Google Scholar 

  • Hemingway, C. A., and Maclagan, P. W. (2004). ‹Managers’ Personal Values as Drivers of Corporate Social Responsibility’. Journal of Business Ethics, 5, 33–44. doi:10.1023/B:BUSI.0000020964.80208.c9.

    Article  Google Scholar 

  • Herman, P. (2002). The Influence of CEO Characteristics on the International Diversification of Manufacturing Firms: An Empirical Study in the United States. International Journal of Management, 19(2), 279–289.

    Google Scholar 

  • Hermann, P., and Datta, D. K. (2005). Relationships between Top Management Team Characteristics and International Diversification: An Empirical Investigation. British Journal of Management, 16, 69–78. doi:10.1111/j.1467-8551.2005.00429.x.

    Article  Google Scholar 

  • Hillman, A. J. and G. D. Keim: 2001, `Shareholder Value, Stakeholder Management, and Social Issues: What’s the Bottom Line?’, Strategic Management Journal 22(2), 125–139. doi:10.1002/1097-0266(200101)22:2<125::AID- SMJ150>3.0.CO;2-H.

  • Hosmer, L. T. (1982). The Importance of Strategic Leadership. The Journal of Business Strategy, 3(2), 47–58. doi:10.1108/eb038966.

    Article  Google Scholar 

  • Husted, B. W. (2005). Risk Management, Real Options, and Corporate Social Responsibility. Journal of Business Ethics, 60(2), 175–183. doi:10.1007/s10551-005-3777-1.

    Article  Google Scholar 

  • Jackson, S. 1992. ‹Consequences of Group Composition for the Interpersonal Dynamics of Strategic Issue Processing’. In P. Shrivastava, A. Huff, and J. Dutton (Eds.), Advances in strategic management. Greenwich, CT: JAI Press 345–382.

    Google Scholar 

  • Johnson, R. A., and Greening, D. W. (1999). The Effects of Corporate Governance and Institutional Ownership Types on Corporate Social Performance. Academy of Management Journal, 42(5), 564–576. doi:10.2307/256977.

    Article  Google Scholar 

  • Kane, E. J. (2002). Using Deferred Compensation to Strengthen the Ethics of Financial Regulation. Journal of Banking & Finance, 26, 1919–1933. doi:10.1016/S0378-4266(02)00198-X.

    Article  Google Scholar 

  • Kauffmann, N. L., Martin, J.N., and Weaver, H. D. 1992. Students abroad: Strangers at home. Yarmouth, ME, Intercultural Press.

    Google Scholar 

  • Kohonen, E. (2004). Learning Through Narratives About the Impact of International Assignments on Identity. International Studies of Management & Organization, 34(3), 27–45.

    Google Scholar 

  • Lawrence, P., and Lorsch, J. (1967). Differentiation and Integration in Complex Organizations. Administrative Science Quarterly, 12, 1–30. doi:10.2307/2391211.

    Article  Google Scholar 

  • Mahoney, L. S., and Thorn, L. (2006). An Examination of the Structure of Executive Compensation and Corporate Social Responsibility: A Canadian Investigation. Journal of Business Ethics, 69(2), 149–162. doi:10.1007/s10551-006-9073-x.

    Article  Google Scholar 

  • Maignan, I., and Ralston, D. A. (2002). ‹Corporate Social Responsibility in Europe and the US Insights from Business’ Self-presentations’. Journal of International Business Studies, 33(3), 497–514. doi:10.1057/palgrave.jibs.8491028.

    Article  Google Scholar 

  • McGuire, J., Dow, S., and Argheyd, K. (2003). CEO Incentives and Corporate Social Performance. Journal of Business Ethics, 45(4), 341–359. doi:10.1023/A:1024119604363.

    Article  Google Scholar 

  • McWilliams, A. and D. Siegel: 2000, `Corporate Social Responsibility and Financial Performance: Correlation or␣Misspecification?', Strategic Management Journal 21, 603–609. doi:10.1002/(SICI)1097-0266(200005)21:5< 603::AID-SMJ101>3.0.CO;2-3

  • Mintzberg, H. (1978). Patterns in strategy formation. Management Science, 24(9), 934–949. doi:10.1287/mnsc.24.9.934.

    Article  Google Scholar 

  • Ricks, D., Toyne. And, B., and Martinez, Z. (1990). Recent Developments in International Management Research. Journal of Management, 16(2), 219–253. doi:10.1177/014920639001600202.

    Article  Google Scholar 

  • Rokeach, M. 1973. ‹The nature of human values’, New York: Free Press.

    Google Scholar 

  • Roth, K. (1995). Managing International Interdependence: CEO Characteristics. Academy of Management Journal, 38(1), 200–232. doi:10.2307/256733.

    Article  Google Scholar 

  • Sambharya, R. B.: 1996, `Foreign Experience of Top Management Teams and International Diversification Strategies of U.S. Multinational Corporations', Strategic Management Journal 17, 739–746. doi:10.1002/(SICI) 1097-0266(199611)17:9<739::AID-SMJ846>3.0.CO; 2-K

  • Schwartz, S. H., and Bilski, W. (1987). Toward a Universal Psychological Structure on Human Values. Journal of Personality and Social Psychology, 53, 550–562. doi:10.1037/0022-3514.53.3.550.

    Article  Google Scholar 

  • Sharfman, M. (1996). The Construct Validity of the Kinder, Lydenberg and Domini Social Performance Ratings Data. Journal of Business Ethics, 15(3), 287–296. doi:10.1007/BF00382954.

    Article  Google Scholar 

  • Sharma, S. and H. Vredenburg: 1998, `Proactive Corporate Environmental Strategy and the Development of Competitively Valuable Organizational Capabilities', Strategic Management Journal 19(8), 729–754. doi:10.1002/(SICI)1097-0266(199808)19:8<729::AID- SMJ967>3.0.CO;2-4

  • Simerly, R. L. (2000). A Theoretical Examination of the Relationship between Chief Executive Officers and Corporate Social Performance. International Journal of Management, 17(2), 218–223.

    Google Scholar 

  • Simerly, R. L. (2003). An Empirical Examination of the Relationship between Management and Corporate Social Performance. International Journal of Management, 20(3), 353–359.

    Google Scholar 

  • Song, J. H. (1982). Diversification Strategies and the Experience of Top Executives of Large Firms. Strategic Management Journal, 3(4), 377–381. doi:10.1002/smj.4250030411.

    Article  Google Scholar 

  • Strike, V. M., Gao, J., and Bansal, P. (2006). Being Good While Being Bad: Social Responsibility and the International Diversification of US Firms. Journal of International Business Studies, 37, 850–862. doi:10.1057/palgrave.jibs.8400226.

    Article  Google Scholar 

  • Suutari, V.,and Makela, K. (2007). The Career Capital of Managers with Global Careers. Journal of Managerial Psychology, 22(7), 628–648. doi:10.1108/02683940710820073.

    Article  Google Scholar 

  • Thomas, A. S., Litschert, R. J., and Ramaswamy, K. (1991). The Performance Impact of Strategy Manager Co-alignment: An Empirical Examination. Strategic Management Journal, 12(7), 509–523. doi:10.1002/smj.4250120704.

    Article  Google Scholar 

  • Thomas, A. S., and Simerly, R. L. (1994). The Chief Executive Officer and Corporate Social Performance: An Interdisciplinary Examination. Journal of Business Ethics, 13(12), 959–968. doi:10.1007/BF00881665.

    Article  Google Scholar 

  • Thomlison, T. D.: 1991, ‹Effects of a Study-Abroad Program on University Students: Toward a Predictive Theory of Intercultural Contact’, Paper Presented at the Annual Intercultural and Communication Conference, 22 February 1991, Miami, FL.

  • Turban, D. B., and Greening, D. W. (1996). Corporate Social Performance and Organizational Attractiveness to Prospective Employees. Academy of Management Journal, 40(3), 658–672. doi:10.2307/257057.

    Article  Google Scholar 

  • Valentine, S., and Fleischman, G. (2008). Ethics Programs, Perceived Corporate Social Responsibility and Job Satisfaction. Journal of Business Ethics, 77, 159–172. doi:10.1007/s10551-006-9306-z.

    Article  Google Scholar 

  • Waddock, S. A. and S. B. Graves: 1997, `The Corporate Social Performance-Financial Performance Link', Strategic Management Journal 18(4), 303–319. doi:10.1002/ (SICI)1097-0266(199704)18:4<303::AID-SMJ869> 3.0.CO;2-G

  • Waldman, D. A., Siegel, D. S., and Javidan, M. (2006). Components of CEO Transformation Leadership and Corporate Social Responsibility. Journal of Management Studies, 43(8), 1703–1725. doi:10.1111/j.1467-6486.2006.00642.x.

    Article  Google Scholar 

  • Wallace, D. H.: 1999, ‹Academic Study Abroad: The Long-term Impact on Alumni Careers, Volunteer Activities, World and Personal Perspectives’, Dissertation, The Claremont Graduate University, DAI-A, 60/02, Aug 1999, 365 pp.

  • Walsh, J. P. (1988). ‹Selectivity and Selective Perception: An Investigation of Managers’ Belief Structures and Information Processing’. Academy of Management Journal, 37, 873–896. doi:10.2307/256343.

    Article  Google Scholar 

  • Wood, D. J. (1991). Corporate Social Performance Revisited. Academy of Management Review, 16(4), 691–718. doi:10.2307/258977.

    Article  Google Scholar 

  • Zorn, C. R. (1996). The Long-term Impact on Nursing Students of Participating in International Education. Journal of Professional Nursing, 12(2), 106–110. doi:10.1016/S8755-7223(96)80056-1.

    Article  Google Scholar 

Download references

Acknowledgment

We are grateful to Scot Burton for his helpful comments and suggestions.

Author information

Authors and Affiliations

  1. Sam M. Walton College of Business, University of Arkansas, Fayetteville, AR, 72761, U.S.A.

    Daniel J. Slater & Heather R. Dixon-Fowler

Authors
  1. Daniel J. Slater
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Heather R. Dixon-Fowler
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Daniel J. Slater.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Slater, D.J., Dixon-Fowler, H.R. CEO International Assignment Experience and Corporate Social Performance. J Bus Ethics 89, 473–489 (2009). https://doi.org/10.1007/s10551-008-0011-y

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10551-008-0011-y

Keywords

Search

Navigation