Leader Ethical Behavior and Corporate Social Responsibility: The Moderating Role of Stakeholder Pressure

Abstract

This study examined the relationship between leader ethical behavior and corporate social responsibility (CSR) by focusing on the moderating role of stakeholder pressure. Analysis was made based on data collected from a sample of 352 domestic Ethiopian manufacturing firms. Employees were asked to rate their supervisor’s ethical leadership practices, CSR, and the stakeholder pressure to adopt CSR they felt. We found that CEO ethical leadership positively influences corporate social responsibility. In addition, moderated path analysis indicated that stakeholder pressure strengthens the direct effect of CEO ethical leadership on corporate social responsibility. Theoretical and managerial implications of these results are also discussed.

Keywords: Corporate social responsibility, Ethical leadership, Stakeholder pressure

DOI: 10.7176/EJBM/15-8-08

Publication date: April 30^th 2023