Why CEOs of socially responsible companies face a higher risk of getting fired
As a consumer, you may feel a little better knowing that stores where you shop pay their workers a fair wage, hire a diverse workforce and avoid polluting the environment. But if you’re a CEO trying to run your business in this way — known as practicing corporate social responsibility — you may actually be taking on an unexpected personal risk, a new study finds.
Indeed, CEOs of socially responsible companies are actually 84% more likely to be fired than counterparts at less socially responsible companies — if the firms in question suffer similarly poor financial performance, according to a paper in Strategic Management Journal from researchers at the University of Oregon, University of Georgia and University of Notre Dame.
Now, the study found this trend can cut both ways: CEOs of financially successful CSR companies are indeed less likely to be dismissed. But that effect is not as strong — giving those CEOs whose firms do good and do well only a 53% decrease in firing likelihood.
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Source: Mic (link opens in a new window)