An examination of the dimensions of CEO power and corporate social responsibility

Abstract

Purpose

This study empirically aims to examine the relation between CEO power and firm engagement in corporate social responsibility (CSR). It undertakes an in-depth analysis of how the structural, ownership and expert dimensions of CEO power affect individual dimensions of CSR.

Design/methodology/approach

This study uses ordinary least squares and industry fixed-effects regressions. It also uses instrumental variable-generalized method of moment regressions to test the robustness of empirical results.

Findings

Results indicate that CEO power is negatively related to CSR. However, the relation between CEO power and CSR is influenced by CSR strengths, as power is negatively related to CSR strengths and is not related to CSR concerns. Results also indicate that the structural and ownership dimensions of CEO power are negatively related to CSR, and the expert dimension has no significant effect on CSR. Moreover, results show that CEO power is not related to the product dimension of CSR performance.

Research limitations/implications

CEO power is measured using the structural, ownership and expert dimensions of power. However, CEOs also acquire power through social networks and connections outside the corporation which is not covered in this study.

Originality/value

This study uses comprehensive measures of CEO power and CSR. It is the first study that examines the effect of dimensions of CEO power on individual dimensions of CSR performance.

Citation

Sheikh, S. (2019), "An examination of the dimensions of CEO power and corporate social responsibility", Review of Accounting and Finance, Vol. 18 No. 2, pp. 221-244. https://doi.org/10.1108/RAF-01-2018-0034