Naslov
Action is Eloquence? Executive-Worker Pay Ratio and Employee Related Discussion in CSR Reports

Autori
Wu, Shing-Jen ; Wang, Ta-Wei ; Zilic, Ivana

Izvornik
Academy of Management Annual Meeting Proceedings (0065-0668) (2017); /-/

Vrsta, podvrsta i kategorija rada
Radovi u časopisima, članak, znanstveni

Ključne riječi
GRI-formatted CSR report

Sažetak
The Securities and Exchange Commission (SEC) passed the rule about disclosing the pay ratio between the chief executive officer (CEO) and the median of total compensation received by the rest the company’s employees. Such rule may better help shareholders to understand the compensation practices of the companies. However, are such practices aligned with the companies’ discussion about employee related issues in their CSR reports? This study investigates the association between voluntary CSR disclosures about employee related issues and the executive-worker pay ratio by building on the theory regarding the manager’s intrinsic orientation that guides CSR activities. Using a sample for S&P 500 companies in 2015, our initial findings demonstrate that cognitive and linguistic processes may not align with a company’s CSR actions. In particular, we do not observe a significant association between a GRI-formatted CSR report and the executive-worker pay ratio. However, (GRI-formatted) CSR reports accompanied by third-party assurance are significantly and negatively related to the pay ratio. In addition, we review employee related disclosures in the company’s CSR report, and find that when a company only focus on positive (negative) information, it positively (negatively) affects the pay ratio. Our study contributes to the literature in executive-worker pay ratio and CSR.

Izvorni jezik
Engleski

POVEZANOST RADA