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Looking at the darker side of the mirror: the impact of CEO's narcissism on corporate social irresponsibility

Author

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  • Marta Riera
  • María Iborra

Abstract

Purpose - The aim of this article is to highlight the major part played by executives in the escalation of corporate social irresponsibility (CSI). Based on the upper echelons theory, the authors developed a model which shows the essential role of CEOs in explaining CSI. The authors proposed that the key personality traits of CEOs—narcissism—, as well as their power, could explain the degree of CSI. Design/methodology/approach - Due to the significant methodological challenges when investigating CSI, the authors explored a novel method for measuring CSI in order to assess the degree of irresponsible behaviors. The authors build a CSI scale based on the perceptions of key informants, i.e. experts with diverse professional backgrounds. The authors apply CSI scale in a sample of 84 Spanish companies that were involved in CSI. Findings - The results of the authors’ empirical study show the positive and significant influence of CEO narcissism and CEO power on the degree of CSI. Research limitations/implications - On the one hand, corporate irresponsibility scandals have relevant social consequences and practical implications. On the other hand, narcissism is a natural feature of managers in top positions that is increasing in societies. Practical implications - The authors’ findings may help CEOs, TMTs and corporate boards to acknowledge potential sources of CSI decreasing its likelihood through counterbalancing CEO's power and considering the dark side of narcissism. Social implications - On the one hand, corporate scandals have relevant social and practical implications. On the other hand, narcissism is a natural feature of managers in top positions that is increasing in societies. Originality/value - In this paper, the authors highlight the role of CEOs characteristics and their firms as the key actors for explaining and understanding the degree of CSI. 研究目的: - 本研究擬強調行政主管在加劇企業無社會責任感上所扮演的主要角色。我們根據高層梯隊理論, 開發了一個模型, 來顯示執行長如何在解釋企業無社會責任感上所起的關鍵作用。我們提出一個見解, 就是: 執行長的主要人格特質-自戀和其權力-或許能解釋企業無社會責任感的程度。 研究設計/方法/理念: - 由於面對在關於企業無社會責任感的研究法上的重大挑戰, 我們探索了一個估量企業無社會責任感的新穎方法, 以能對企業無社會責任感行為的程度進行評估。我們根據主要的資訊提供者的觀念和看法, 制定了一個企業無社會責任感的等級 (這些主要的資訊提供者均為具有不同專業背景的專家), 我們在84間西班牙公司的樣本裡, 使用了這企業無社會責任感等級, 而這些公司均涉及企業無社會責任感的。 研究結果: - 我們這實證研究的結果顯示, 執行長的自戀和其權力, 對企業無社會責任感的程度, 起著正面和顯著的影響。 研究的原創性: - 在本學術論文裡, 我們強調了執行長的特徵和他們的公司, 是瞭解和解釋企業無社會責任感的程度的關鍵行為者。 實務和社會方面的啟示: - 一方面, 企業無社會責任感的醜聞會帶來相關的社會後果和實務方面的影響;而另一方面, 自戀是高層主管的自然特徵, 而這些特徵, 在我們的社會裡不斷增強。本研究的結果, 或許可幫助執行長、高層管理團隊和公司董事會去承認企業無社會責任感的潛在原因, 並以透過平衡執行長的權力和考慮自戀的陰暗面而減低企業無社會責任感產生的可能。

Suggested Citation

  • Marta Riera & María Iborra, 2023. "Looking at the darker side of the mirror: the impact of CEO's narcissism on corporate social irresponsibility," European Journal of Management and Business Economics, Emerald Group Publishing Limited, vol. 34(1), pages 67-87, September.
  • Handle: RePEc:eme:ejmbep:ejmbe-09-2022-0289
    DOI: 10.1108/EJMBE-09-2022-0289
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