The PROS and CONS of rewarding social responsibility at the top

Pascual Berrone, Luis R. Gomez-Mejia

Research output: Contribution to journalArticle

43 Scopus citations

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 1 2009
Externally publishedYes

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

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