Corporate social responsibility, CEO compensation structure, and corporate innovation activities

Bu Kyung Choi, Ji Young Ahn, Myeong Cheol Choi

Research output: Contribution to journalArticlepeer-review

5 Scopus citations

Abstract

This study empirically investigated the economic effect of CSR initiatives on innovation by examining Korean firms. Our primary objective of this study was to explore how a CEO compensation system can affect the CSR-innovation relationship. An integrated model of the impact of CSR on innovation activities was developed through analyzing various CEO compensation components such as structure, type, mix, and distribution. We identified the CEO compensation system that more suitably supports CSR in driving innovation performance improvement, and empirically examined a compensation system that enhances corporate innovation by creating a good alignment with CSR. Using a longitudinal data, we empirically tested the interactive effect of a CSR and compensation system of CEO in Korean publicly traded companies. Our empirical findings concerning the interaction between CSR strategies and CEO compensation schemes hold practical implications for establishing and implementing a suitable human resource system to improve organizational competitiveness.

Original languageEnglish
Article number13039
JournalSustainability (Switzerland)
Volume13
Issue number23
DOIs
StatePublished - 1 Dec 2021

Bibliographical note

Publisher Copyright:
© 2021 by the authors. Licensee MDPI, Basel, Switzerland.

Keywords

  • CEO compensation structure
  • Corporate social responsibility
  • Equity
  • Innovation
  • Social ex-change

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