The PROS and CONS of rewarding social responsibility at the top

Pascual Berrone, Luis Gomez-Mejia

Research output: Contribution to journalArticle

41 Citations (Scopus)

Abstract

Overemphasis on financial performance criteria to award incentives for CEOs has often been mentioned as one of the main culprits behind recent corporate scandals. In response, there is a growing chorus for inclusion of social performance criteria in the design of executive compensation schemes. To date, however, very little is known about the true benefits of this practice. This article critically discusses the potential advantages and pitfalls of this recommendation.

Original languageEnglish (US)
Pages (from-to)959-971
Number of pages13
JournalHuman Resource Management
Volume48
Issue number6
DOIs
StatePublished - Nov 2009
Externally publishedYes

Fingerprint

Social Responsibility
Motivation
Performance criteria
Social responsibility
Compensation and Redress
Social performance
Inclusion
Incentives
Financial performance
Corporate scandal
Chief executive officer
Executive compensation

Keywords

  • Corporate social responsibility
  • Executive compensation
  • Social criteria

ASJC Scopus subject areas

  • Applied Psychology
  • Strategy and Management
  • Organizational Behavior and Human Resource Management
  • Management of Technology and Innovation

Cite this

The PROS and CONS of rewarding social responsibility at the top. / Berrone, Pascual; Gomez-Mejia, Luis.

In: Human Resource Management, Vol. 48, No. 6, 11.2009, p. 959-971.

Research output: Contribution to journalArticle

@article{5084093f2483494eac9d3a6bef15764c,
title = "The PROS and CONS of rewarding social responsibility at the top",
abstract = "Overemphasis on financial performance criteria to award incentives for CEOs has often been mentioned as one of the main culprits behind recent corporate scandals. In response, there is a growing chorus for inclusion of social performance criteria in the design of executive compensation schemes. To date, however, very little is known about the true benefits of this practice. This article critically discusses the potential advantages and pitfalls of this recommendation.",
keywords = "Corporate social responsibility, Executive compensation, Social criteria",
author = "Pascual Berrone and Luis Gomez-Mejia",
year = "2009",
month = "11",
doi = "10.1002/hrm.20324",
language = "English (US)",
volume = "48",
pages = "959--971",
journal = "Human Resource Management",
issn = "0090-4848",
publisher = "Wiley-Liss Inc.",
number = "6",

}

TY - JOUR

T1 - The PROS and CONS of rewarding social responsibility at the top

AU - Berrone, Pascual

AU - Gomez-Mejia, Luis

PY - 2009/11

Y1 - 2009/11

N2 - Overemphasis on financial performance criteria to award incentives for CEOs has often been mentioned as one of the main culprits behind recent corporate scandals. In response, there is a growing chorus for inclusion of social performance criteria in the design of executive compensation schemes. To date, however, very little is known about the true benefits of this practice. This article critically discusses the potential advantages and pitfalls of this recommendation.

AB - Overemphasis on financial performance criteria to award incentives for CEOs has often been mentioned as one of the main culprits behind recent corporate scandals. In response, there is a growing chorus for inclusion of social performance criteria in the design of executive compensation schemes. To date, however, very little is known about the true benefits of this practice. This article critically discusses the potential advantages and pitfalls of this recommendation.

KW - Corporate social responsibility

KW - Executive compensation

KW - Social criteria

UR - http://www.scopus.com/inward/record.url?scp=77149133714&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=77149133714&partnerID=8YFLogxK

U2 - 10.1002/hrm.20324

DO - 10.1002/hrm.20324

M3 - Article

AN - SCOPUS:77149133714

VL - 48

SP - 959

EP - 971

JO - Human Resource Management

JF - Human Resource Management

SN - 0090-4848

IS - 6

ER -