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Differential impact of chief executive officer tenure on the firm's external and internal corporate social responsibility: Moderating effects of firm's visibility and slack

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  • Marwan Al‐Shammari
  • Soumendra Banerjee
  • Miguel Caldas
  • Krist Swimberghe

Abstract

Inconsistent corporate social responsibility (CSR) practices across stakeholder groups may induce undesired consequences for the firm. This study investigates the longitudinal and differential effect of chief executive officer (CEO) tenure on external and internal CSR and the moderating effects of two important contingencies relevant to the firm's social investments: firm visibility and slack availability. It presents CEO tenure as an important upper echelon factor that may induce differential preferences toward external and internal CSR and, therefore, CSR inconsistencies. Accordingly, it proposes two important and relevant contingencies and provides additional evidence on how a firm's visibility and slack availability could affect CEO tenure‐related differential behaviors. The findings contribute to studies on the temporal orientations of CEOs and how they impact firm strategic behavior. They also contribute to the literature on firm visibility and slack and how they may interact with certain upper echelon characteristics and affect firm behaviors. The analysis cautions against the perceptions of the relationships between firm‐ and CEO‐level variables and a firm's aggregate CSR.

Suggested Citation

  • Marwan Al‐Shammari & Soumendra Banerjee & Miguel Caldas & Krist Swimberghe, 2023. "Differential impact of chief executive officer tenure on the firm's external and internal corporate social responsibility: Moderating effects of firm's visibility and slack," Business Ethics, the Environment & Responsibility, John Wiley & Sons, Ltd., vol. 32(3), pages 961-985, July.
    • Handle: RePEc:wly:buseth:v:32:y:2023:i:3:p:961-985
    DOI: 10.1111/beer.12548
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