What is it about?
I show that linking executive pay to social and environmental goals can reduce corporate scandals and harmful behavior. These incentives are most effective in dynamic industries, but less so in resource-rich ones.
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Why is it important?
Rewarding leaders for responsibility prevents scandals, protects stakeholders, and strengthens trust in business.
Perspectives
I keep seeing debates on how investors can push companies toward responsibility. What strikes me is that linking executive pay to social goals does more than drive progress – it also helps prevent harmful actions.
Philipp Richter
Technische Universitat Dresden
Read the Original
This page is a summary of: CSR incentives and corporate irresponsibility: evidence from the United States, Review of Accounting and Finance, October 2025, Emerald,
DOI: 10.1108/raf-11-2024-0481.
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