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  • Thumbnail for CORPORATE SOCIAL RESPONSIBILITY AND EXECUTIVE COMPENSATION STRUCTURE
    CORPORATE SOCIAL RESPONSIBILITY AND EXECUTIVE COMPENSATION STRUCTURE by Kristoff, Grayson

    Corporate Social Responsibility has gained more traction in our modern day society than ever before. It is now a major factor for which a corporation is evaluated on. Corporate Governance, and the goals set fourth through this governance play a major role in dictating the socially responsible actions of a firm. Major facets in the context of corporate governance are Chief Executive Officers, faced with the duty of integrating these goals into every day corporate life. In order to provoke distinct action by a CEO corporations construct defined compensation structures in order to incentivize desired initiatives. This relationship highlights the importance of incentive compensation in relation to socially responsible goals of a corporation. This study takes CSR index data from CSRHub’s database, and compares it to lagged executive compensation data collected from the Mergent Online database. We find that there are distinct relationships between certain forms of executive compensation and CSR rating levels, which are consistent with previous literature. We also find inverse relationships between salary compensation and various forms of CSR when compared to past investigations in the field.