Are better-connected CEOs more socially responsible? Evidence from the U. S. restaurant industry

Extensive research has documented how corporate social responsibility (CSR) outcomes are determined by CEOs? intrinsic characteristics, while their social network status has been under-researched. Building on impression management theory and resource-based theory, the current study analyzes the association between CSR activities and top management?s position in the social hierarchy, i.e., network centrality. The heterogeneous effects across different restaurant and CSR types are examined based on stakeholder theory. Using a panel dataset of publicly traded U.S. restaurant companies and a novel dataset of CEO network centrality, we find that firms with highly connected CEOs are involved in more socially responsible activities. In addition, the marginal effect of network centrality on CSR is stronger for fast-food than for full-service restaurants and more prominent for external than internal stakeholder subcategories. The results advance the determinant analysis of CSR and provide managerial implications for CEO selection and policy suggestions on CSR promotion.

Automated summary

Extensive research has shown that corporate social responsibility outcomes are influenced by CEOs' intrinsic characteristics, while their social network status also plays a role. Companies with highly connected CEOs are more likely to engage in socially responsible activities, with a stronger impact seen in fast-food companies.