Not in My Homeland: Immigrant CEOs and the Geography of Corporate Social Irresponsibility-Peking University HSBC Business School(PHBS)

Not in My Homeland: Immigrant CEOs and the Geography of Corporate Social Irresponsibility

2023-06-30 16:06:06

Building upon the place attachment theory, this study establishes a link between CEOs’ immigrant backgrounds and the geography of MNEs’ corporate social irresponsibility (CSI) incidents. We theorize that immigrant CEOs tend to develop a psychological bonding with their homeland countries, which consequently stimulates place-protective behaviors towards their homelands, leading to fewer CSI incidents in immigrant CEOs’ homeland countries compared to other CEOs who are not from these countries. Moreover, this mechanism will be further enhanced if immigrant CEOs’ homelands suffer from greater sustainability deficiencies or provide a more important market to MNEs. An analysis of a propensity-score-matched sample of MNEs from the U.S. S&P 500 firms during the period 2007-2020 supported our arguments.

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