New research indicates that corporate leaders look to the White House for leadership on social responsibility - but not in the way you might expect.
In her recent study, Assistant Professor of Management Nara Jeong examined CEO behavior and corporate social responsibility starting in the mid 1990s. She and the study's co-author found that liberal CEOs invest more into socially conscious activities when they feel these social values are threatened by American leadership. "Republican presidents aren’t as interested in those values, so business leaders think, ‘We need to do more to promote and protect these values,’” says Jeong.
However, when CEOs share the same political beliefs as the president, their support for socially conscious initiatives decreased. Even left-leaning CEOs, who are most likely to engage in these activities, reduced efforts by an average of 18% while a left-leaning president held office. According to the research team, this is due to the assumption that the government will deliver on these prioritized social values.
"You think that the people who are committed to social responsibility will stay committed regardless of the context," Jeong reflects, "[but CEOs] may change their stance if the context changes."