Beyond profit: Exploring CEO tenure, social value risk-taking, and competitive dynamics in savings banks

IF 8.3 2区管理学 Q1 BUSINESS

Corporate Social Responsibility and Environmental Management Pub Date : 2024-12-05 DOI:10.1002/csr.3070

Steve Kyungjae Lee

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引用次数: 0

Abstract

Existing research overlooks the possibility that firms may engage in risk-taking for social value beyond profit. Drawing on the community embeddedness literature, we propose that firms engage in risk-taking for social value to enhance their local standing and acceptance. We examine the microfinance lending activities of 79 South Korean savings banks from 2013 to 2022 to test our hypotheses. Contrary to previous findings that longer CEO tenure decreases corporate risk-taking, our results show that longer CEO tenure is associated with increased corporate risk-taking for social value, suggesting that the impact of CEO tenure on risk-taking depends on the firm's goals. Additionally, our results indicate that when neighboring firms in the same community engage in legitimacy-enhancing behaviors, this triggers a corresponding increase in the focal firm's efforts to enhance local legitimacy. This implies a competitive “race for legitimacy” among firms within the community. We discuss these findings' implications and explore future research directions.

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来源期刊

Corporate Social Responsibility and Environmental Management Multiple-

CiteScore

17.20

自引率

16.30%

发文量

189

期刊介绍： Corporate Social Responsibility and Environmental Management is a journal that publishes both theoretical and practical contributions related to the social and environmental responsibilities of businesses in the context of sustainable development. It covers a wide range of topics, including tools and practices associated with these responsibilities, case studies, and cross-country surveys of best practices. The journal aims to help organizations improve their performance and accountability in these areas. The main focus of the journal is on research and practical advice for the development and assessment of social responsibility and environmental tools. It also features practical case studies and evaluates the strengths and weaknesses of different approaches to sustainability. The journal encourages the discussion and debate of sustainability issues and closely monitors the demands of various stakeholder groups. Corporate Social Responsibility and Environmental Management is a refereed journal, meaning that all contributions undergo a rigorous review process. It seeks high-quality contributions that appeal to a diverse audience from various disciplines.