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| Author: | Mahoney, L.S. Thorn, L. |
| Title: | An examination of the structure of executive compensation and corporate social responsibility: A Canadian investigation |
| Journal: | Journal of Business Ethics
2006 : DEC I, VOL. 69:2, p. 149-162 |
| Index terms: | canada compensation corporate responsibility executives |
| Language: | eng |
| Abstract: | This paper investigates the extent to which Boards use executive compensation to incite firms to act in accordance with social and environmental objectives. The relation between executive compensation and corporate social responsibility for 77 Canadian firms is examined using three key components of executives' compensation structure: salary, bonus, and stock options. Three different aspects of CSR; total CSR, CSR strengths and CSR weaknesses are measured. The authors find evidence of remarkable positive relationships between (1) salary and CSR weaknesses, (2) bonus and CSR strengths, (3) stock options and total CSR, and (4) stock options and CSR strenghts. |
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