Whistle Blowing, Forced CEO Turnover, and Misconduct: The Role of Socially Minded Employees and Directors

• 成果类型: Article
• 署名作者: Bereskin, Frederick; Campbell, Terry, II; Kedia, Simi
• 署名单位: University of Missouri System; University of Missouri Columbia; University of Delaware; Rutgers University System; Rutgers University New Brunswick
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2018.3229
• 发表日期: 2020
• 页码: 24-42
• 关键词: misconduct; whistle blowing; prosocial employees; forced CEO turnover

摘要

We examine the response of prosocial employees and boards of directors to corporate misconduct. We develop several proxies for the presence of prosocial employees and directors based on the density of social networks and social capital in the county of the firms' headquarters and companies' relevant corporate social responsibility ratings. We document that proxies for prosocial employees and directors are associated with an increase in whistle blowing and forced chief executive officer turnover in a sample of firms that engage in misconduct. The higher expected cost of misconduct in firms with prosocial employees is associated with a lower likelihood of misconduct. Our findings highlight the role of nonfinancial imperatives of employees and directors in mitigating misconduct.