1063: There Is a Dark Side to Everything: CEO Creativity and Corporate Social Irresponsibility (19489)

Sunday, August 11, 2024

17:45 - 19:15 CT (GMT-5/UTC-5)

Location: Sheraton: Colorado

Session Number: 1063
Paper Session
Orientation: Research
Shareable link: https://cdmcd.co/pMAg7r

Author(s)

HL

HE Li

Xi'an Jiaotong Liverpool U., China
PS

Philip J. Steinberg

U. of Groningen, Faculty of Economics and Business, Netherlands
JS

Jordi Surroca

U. of Liverpool Management School, United Kingdom
HB

Hille C. Bruns

Groningen U. (RuG), Netherlands

Individual creativity is generally regarded as an important competency for CEOs that positively affects organizational outcomes. However, based on recent insights from the field of psychology, we theorize that CEO creativity may also hold undesirable implications for the firm as it can increase firms’ likelihood to engage in corporate socially irresponsible (CSIR) activities. Moreover, we identify conditions for when our theory applies. We propose that proximity to bankruptcy, strategic flexibility, and track record of corporate social responsibility serve as moderators that enhance our focal relationship. In a longitudinal study of 883 firms for years 2009 to 2020, we find support for the hypothesized relationship between CEO creativity and CSIR and the moderating effects of proximity to bankruptcy and strategic flexibility.

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