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The pros and cons of rewarding social responsibility at the top
Author(s) -
Berrone Pascual,
GomezMejia Luis R.
Publication year - 2009
Publication title -
human resource management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.888
H-Index - 94
eISSN - 1099-050X
pISSN - 0090-4848
DOI - 10.1002/hrm.20324
Subject(s) - incentive , compensation (psychology) , chorus , executive compensation , cons , corporate social responsibility , inclusion (mineral) , public relations , accounting , business , psychology , marketing , economics , political science , social psychology , computer science , microeconomics , programming language , art , literature
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. © 2009 Wiley Periodicals, Inc.