Research Magazine 2023

CEO's Childhood Experience of Natural Disaster and CSR Activities Daewoung Choi, Hyunju Shin, and Kyoungmi Kim

Journal of Business Ethics, 2023

OVERVIEW

Interest in the drivers of corporate social responsibility (CSR) is growing. Using archival data, we explore an understudied area; specifically, three mechanisms that may account for the relationship between CSR and the CEO’s childhood experience of natural disaster. While prior research based on posttraumatic growth theory has established a positive relationship, we explain it through the dual mechanisms of prosocial values and the CEO’s risk aversion. We further find that the positive relationship is stronger when (1) CEOs have longer career horizons, and (2) community social capital is high. This study has important research and managerial implications. In particular, it advances upper echelon theory by revealing that CEOs’ childhood experience of natural disaster, amplified by their career horizons and level of community social capital, is a factor that contributes to understanding the substantial variations in firms’ CSR commitment and effort.

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