Do Corporate Social Performance Targets in Executive Compensation Contribute to Corporate Social Performance?

By K. Maas. 2016

187 citations recorded by the source corpus.

To deal with potential conflicts between the triple-bottom-line expectations of investors and the performance of executives, firms can use incentives by integrating corporate social performance (CSP) targets into executive compensation. No evidence yet exists that CSP targets in executive compensation actually lead to an improvement of CSP results. Using a panel data set of 400 firms for the years 2008–2012 leading to 1846 firm-year observations, the relationships between CSP targets and CSP results and CSP improvements are analyzed. The results show that (a) the level of CSP has no effect on the use of CSP targets, (b) the use of CSP targets in general does not automatically lead to better CSP results, and (c) the use of quantitative, hard CSP targets is an effective way to improve CSP results, especially to lower CSP weaknesses.

Subfields: Accounting, Marketing, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/42b8500a21d59de28950c16e5ff2fcee25c5ca7f

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In Accounting

1. G. Derchi
2. Nadia Smaili
3. Camélia Radu
4. H. Al‐Shaer
5. A. Dossi
6. Laura Zoni

In Marketing

1. G. Derchi
2. Nadia Smaili
3. Camélia Radu
4. H. Al‐Shaer
5. A. Dossi
6. Laura Zoni

In Strategy and Management

1. G. Derchi
2. Nadia Smaili
3. Camélia Radu
4. H. Al‐Shaer
5. A. Dossi
6. Laura Zoni

Citations in the corpus

• Alignment Versus Monitoring: An Examination of the Effect of the CSR Committee and CSR-Linked Executive Compensation on CSR Performance (2021, methodology): “As in previous studies (Dixon-Fowler et al., 2017; Endrikat et al., 2020; Maas, 2018), a dummy variable is used to capture the presence of a board CSR committee, coded 1 if the firm has a CSR or similar committee and 0 otherwise.”
• Corporate Social Responsibility Performance, Incentives, and Learning Effects (2020, background): “Since the work by Russo and Harrison (2005) documenting a weak direct association between environmental targets and desired environmental performance in the electronic industry, only Maas (2018) and Flammer et al.”
• Corporate governance, law, culture, environmental performance and CSR disclosure: A global perspective (2020, unknown): “Such evidence is consistent with recent empirical findings of Dahlmann et al. (2017) and Maas (2018).”
• Sustainability reporting quality and post‐audit financial reporting quality: Empirical evidence from the UK (2020, methodology): “Third, this study uses a sample that is more recent (2007 – 2018) than the samples examined in prior research and provides evidence from the United Kingdom (an important market to examine in isolation).”