The pros and cons of rewarding social responsibility at the top
Pascual Berrone, Luis R. Gomez-Mejia
Human Resource Management · 2009 · Volume 48 · Issue 6
Abstract
Overemphasis on financial performance criteria to award incentives for CEOs has often been mentioned as one of the main culprits behind recent corporate scandals. In response, there is a growing chorus for inclusion of social performance criteria in the design of executive compensation schemes. To date, however, very little is known about the true benefits of this practice. This article critically discusses the potential advantages and pitfalls of this recommendation. © 2009 Wiley Periodicals, Inc.
Keywords
corporate social responsibility, executive compensation, social criteria
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