Latest Seminars

Janus-faced do-gooders? A mental accounting perspective on cross-domain decision-making

We investigate the influence of business elites on the allocation of limited resources to alternative causes related to the social good, such as community or environmental programs. Specifically, we ask whether individuals display consistent preferences, or whether they seek to balance allocations over a broader set of social causes. We study this issue by (a) assessing the promotion of specific social causes across two institutional domains that CEOs influence simultaneously: corporate CSR and foundations’ grant-making and (b) extending the application of psychology’s moral accounting framework to the study of executive decision-making in the public domain. Using a panel of 677 corporations linked to 309 foundations through 1,109 CEOs during the period 2003-2011, we find that executives engage in “mental accounting” in realizing social values-based priorities: CEOs respond to deficits in their firms’ CSR record by joining the board of trustees of a nonprofit foundation and then partition the social cause priorities of these organizations. We contribute to research in CSR and managerial cognition by examining how executives pursue their values-based priorities across institutional domains and by proposing a dynamic theoretical model that complements consistency-laden representations of executive decision-making.

 

Speaker :
Prof. Razvan Lungeanu, Northeastern University
Venue :
LSK Rm5047 (Lift 1-2)
Date :
08.03.2019
Time :
10:30am-12:00pm