Theses and Dissertations

Date of Award

8-1-2024

Document Type

Dissertation

Degree Name

Doctor of Philosophy (PhD)

Department

Management

First Advisor

Michael Abebe

Second Advisor

Jennifer Welbourne

Third Advisor

Yejun Zhang

Abstract

In an era characterized by self-promotion, individualism, and the pursuit of self-interest, the virtue of humility appears to be in decline, with far-reaching implications for contemporary organizations and overall social cohesion. The corporate landscape, in particular, has not been immune to this trend, as leaders who prioritize humility are becoming increasingly scarce (Heimann, 2021). Within the realm of business and, more specifically, leadership, the scarcity of humility can create a fertile ground for organizational misconduct to flourish, as it may reduce accountability and foster an unethical climate. Additionally, when misconduct is exposed, the perceived lack of humility in leadership can fuel stakeholder protest activism, such as boycotts and shareholder activism. Therefore, cultivating humility among CEOs and organizational leaders is not only a matter of ethical leadership but also a strategic imperative for maintaining a positive reputation, ethical conduct, and healthy stakeholder relations. In recent years, studies have investigated the antecedents and consequences of CEO humility (i.e., Owens et al., 2013; Ou et al., 2018; Petrenko et al., 2016, 2019,2022). These investigations have revealed that CEO humility is often influenced by personal traits, such as a leader’s self-awareness and openness to feedback (Owens et al., 2013), and organizational factors, including a company’s ethical climate (Wang et al., 2020). Despite the increasing studies on CEO humility and the diminishing presence of humility in leadership, we know little about when and how CEO-expressed humility reduces negative organizational outcomes such as large-scale organizational misconduct and stakeholder protest activism. If so, what role do firm stakeholder orientation and boundary conditions such as CEO celebrity status, regulatory focus, and the industry’s competitive intensity play in this regard? This dissertation delves into the intricate relationship between CEO-expressed humility, stakeholder response, and corporate misconduct. Specifically, it seeks to unpack whether and how the demonstration of humility by a CEO can serve as a mitigating factor in reducing instances of corporate misconduct, such as workforce or environmental violations, and by influencing stakeholder perceptions and shaping the ethical climate within the organization. Additionally, drawing insights from upper echelons, regulatory focus, and stakeholder theories, I explore the possibility that such humility can act as a buffer, reducing the likelihood of stakeholder protest activism in the form of shareholder proposals. Finally, I also examine the organizational and industry contexts, such as industry competitive intensity, CEO regulatory focus, and CEO celebrity status, that might facilitate or hinder the baseline relationship. I empirically tested my predictions using panel data from Standard and Poor’s (S&P) 500 firms from 2018-2023. Qualitative data collected through CEO video interviews, letters to shareholders, and employing a content analysis of corporate communications shed light on how CEO humility may foster a more ethical organizational culture and elicit positive responses from stakeholders. The findings suggest that firms led by humble CEOs appear to have fewer environmental violations compared to their counterparts. Furthermore, the findings regarding industry competitive intensity provide a nuanced understanding of the conditions under which leader humility is more or less influential in shaping these outcomes. Contrary to initial expectations, the results show that higher competitive intensity strengthens the relationship between CEO humility and reduced organizational misconduct and stakeholder activism. As predicted, higher CEO humility scores are positively associated with a greater number of shareholder proposals among firms led by non-celebrity CEOs.The dissertation's findings have a number of scholarly and practical implications. These implications are significant for both scholars and practitioners, offering valuable insights into the role of CEO humility in corporate governance, strategic (ethical) leadership, and stakeholder management.

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Copyright 2024 Guadalupe J. Solano. https://proquest.com/docview/3098580431

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