Thursday, July 7, 2016
You know that your company’s CEO sets the tone for your company’s community engagement, and this study confirms it. Researchers at three graduate schools of business (Georgetown, University of Minnesota and University of Chicago) studied the role of individual CEOs in relationship to their company’s CSR scores. They found that “CEO fixed-effects” accounted for 63 percent of the variation in CSR scores, much of it attributable to a CEO’s “materialism” (defined as relatively high luxury-asset ownership). Firms led by more materialistic CEOs had lower CSR scores. Read the study.