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CEO Ethical Leadership and Corporate Social Responsibility: A Moderated Mediation Model

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Abstract

This study examined the relationship between CEO ethical leadership and corporate social responsibility by focusing on the mediating role of organizational ethical culture and the moderating role of managerial discretion (i.e., CEO founder status and firm size). Based on a sample of 242 domestic Chinese firms, we found that CEO ethical leadership positively influences corporate social responsibility via organizational ethical culture. In addition, moderated path analysis indicated that CEO founder status strengthens while firm size weakens the direct effect of CEO ethical leadership on organizational ethical culture and its indirect effect on corporate social responsibility. Theoretical and managerial implications of these results are discussed.

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Acknowledgments

This work was sponsored by the Shanghai Pujiang Program (13PJC053), the National Natural Science Fund of China (71202001), Program for New Century Excellent Talents in University (NCET-13-0892), and the “Chen Guang” project (Grant 12CG44) supported by Shanghai Municipal Education Commission and Shanghai Education Development Foundation.

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Correspondence to Ho Kwong Kwan.

Appendix

Appendix

CEO Ethical Leadership

Our company’s CEO

  1. 1.

    Conducts personal life in an ethical manner.

  2. 2.

    Defines success not just by results but also the way that they are obtained.

  3. 3.

    Listens to what employees have to say.

  4. 4.

    Disciplines employees who violate ethical standards.

  5. 5.

    Makes fair and balanced decisions.

  6. 6.

    Can be trusted.

  7. 7.

    Discusses business ethics or values with employees.

  8. 8.

    Sets an example of how to do things the right way in terms of ethics.

  9. 9.

    Has the best interests of employees in mind.

  10. 10.

    When making decisions, asks “what is the right thing to do?”

Organizational Ethical Culture

  1. 1.

    Top managers of our company regularly show that they really care about ethics.

  2. 2.

    Top managers of our company represent high ethical standards.

  3. 3.

    Top managers of our company guide decision-making in an ethical direction.

  4. 4.

    Management in our company disciplines unethical behavior when it occurs.

  5. 5.

    Employees in our company accept organizational rules and procedures regarding ethical behavior.

  6. 6.

    Organizational rules and procedures regarding ethical behavior serve only to maintain our company’s public image (R).

  7. 7.

    Penalties for unethical behavior are strictly enforced in our company.

  8. 8.

    Ethical behavior is a norm in our company.

  9. 9.

    Ethical behavior is rewarded in our company.

Corporate Social Responsibility

  1. 1.

    Our company always pays its taxes on a regular and continuing basis.

  2. 2.

    Our company complies with the legal regulations completely and promptly.

  3. 3.

    Our company participates to the activities which aim to protect and improve the quality of the natural environment.

  4. 4.

    Our company implements special programs to minimize its negative impact on the natural environment.

  5. 5.

    Our company makes investment to create a better life for the future generations.

  6. 6.

    Our company targets a sustainable growth which considers to the future generations.

  7. 7.

    Our company supports the non-governmental organizations working in the problematic areas.

  8. 8.

    Our company contributes to the campaigns and projects that promote the well-being of the society.

  9. 9.

    Our company protects consumer rights beyond the legal requirements.

  10. 10.

    Our company provides full and accurate information about its products or services to its customers.

  11. 11.

    Customer satisfaction is highly important for our company.

  12. 12.

    Our company encourages its employees to participate to the voluntarily activities.

  13. 13.

    Our company policies encourage the employees to develop their skills and careers.

  14. 14.

    The management of our company primarily concerns with employees’ needs and wants.

  15. 15.

    Our company implements flexible policies to provide a good work and life balance for its employees.

  16. 16.

    The managerial decisions related with the employees are usually fair.

  17. 17.

    Our company supports employees who want to acquire additional education.

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Wu, LZ., Kwan, H.K., Yim, F.Hk. et al. CEO Ethical Leadership and Corporate Social Responsibility: A Moderated Mediation Model. J Bus Ethics 130, 819–831 (2015). https://doi.org/10.1007/s10551-014-2108-9

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