Kolk, A. and Perego, P. (2010) Determinations of the Adoption of Sustainability Assurance Statements: An International Investigation. Business Strategy and the Environment, 19, 182-198.

has been cited by the following article:

• TITLE: The Impact of Corporate Social Responsibility on Executive Compensation

  AUTHORS: Rim Ben Hassen, Sana Ghardadou

  KEYWORDS: Corporate Social Responsibility, Pay-For-Performance

  JOURNAL NAME: Open Access Library Journal, Vol.7 No.8, August 11, 2020

  ABSTRACT: The following research examines the impact of CSR on executive compensation based on the level of performance of the company by using total CSR, environmental CSR and economic CSR. An empirical study carried out on a sample of French companies over the period 2007-2016 revealed a positive and significant relationship between Pay-for-performance sensitivity and executive compensation. This result is in line with agency theory, which assumes that executives are encouraged to over-invest in CSR activities, in order to eventually improve their reputation to the detriment of shareholders. The overinvestment assumption in corporate social responsibility activities can lead to a deterioration in the value of the firm as it enhances the reputation of the responsible officer, which allows the officer to increase his bargaining power, market value and prospect careers.