Abstracts
Abstract
We propose to explore the research question of whether managers use available non-committed financial resources at their discretion to respond to stakeholder pressure. To address this question, we investigate the relationship between the corporate social performance (CSP) of industrial companies listed on Standard & Poor’s 500 and the financial resources (financial slack) at the discretion of their managers. We find that managers can use financial slack to extend and intensify the CSP of their companies. In terms of types of CSP, these resources are not allocated to reduce the impacts of their companies’ activities on the environment. They are rather oriented toward addressing social issues and social conditions. Moreover, we find that management decisions concerning the allocation of slack resources toward an increase in CSP vary according to a company’s risk profile.
Keywords:
- Corporate social responsibility,
- Financial slack,
- Corporate social performance,
- Managerial discretion,
- Industry risk profiles
Résumé
Les dirigeants utilisent les ressources financières non engagées disponibles à leur discrétion pour répondre à la pression des parties prenantes ? Pour répondre à cette question, nous étudions la relation entre la performance sociale des entreprises industrielles cotées au Standard & Poor’s 500 et les ressources financières à la discrétion de leurs dirigeants. Nous montrons que ces derniers peuvent utiliser les ressources financières disponibles à leur discrétion pour augmenter la performance sociale de leurs entreprises. Egalement, nous signalons que ces ressources ne sont pas allouées pour réduire les impacts environnementaux des activités de leurs entreprises. Ces ressources financières sont utilisées à la résolution des problèmes sociaux et des conditions sociales affectant les parties prenantes. Enfin, nous constatons que les décisions de gestion concernant l’allocation de telles ressources financières varient selon le profil de risque d’une entreprise.
Mots-clés :
- Responsabilité sociale des entreprises,
- Slack financier,
- Performance sociale des entreprises,
- discrétion managériale,
- Profil de risque des secteurs d’activité
Resumen
Proponemos explorar la pregunta de investigación de si los gerentes usan los recursos financieros no comprometidos disponibles a su discreción para responder a la presión de las partes interesadas. Para abordar esta pregunta, investigamos la relación entre el desempeño social corporativo (CSP) de las empresas industriales que figuran en Standard & Poor’s 500 y los recursos financieros (holgura financiera) a discreción de sus gerentes. Encontramos que los gerentes pueden usar la holgura financiera para extender e intensificar el CSP de sus compañías. En términos de tipos de CSP, estos recursos no se asignan para reducir el impacto de las actividades de sus empresas en el medio ambiente. Están más bien orientados a abordar problemas sociales y condiciones sociales. Además, descubrimos que las decisiones administrativas relacionadas con la asignación de recursos flojos hacia un aumento en la CSP varían según el perfil de riesgo de una empresa.
Palabras clave:
- Responsabilidad social corporativa,
- Holgura financiera,
- Desempeño social corporativo,
- Discreción gerencial,
- Perfiles de riesgo de la industria
Appendices
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