Proceedings of the 8th International Conference on Advanced Research in Business, Management and Economics
Year: 2024
DOI:
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Decision Process Influences on Corporate Social Performance
Dr. Pooya Tabesh, Karen Linkletter
ABSTRACT:
Purpose
The purpose of this research is to theorize on how top management teams’ (TMT’s) expertise and engagement in comprehensive and intuitive strategic decision-making processes contribute to corporate social performance.
Design/methodology/approach
Our work proposes a conceptual model of the links between decision process characteristics and corporate social outcomes.
Findings
We show that TMTs’ approach to decision making makes a big difference in the social impact of their decisions. Based on paradox perspective, we explained that while comprehensive decision processes contribute to corporate social performance in stable environments, a combination of comprehensive and intuitive decision processes results in better corporate social performance in turbulent environments.
Originality
Past research has shown that the characteristics of decision process can influence firm’s financial performance outcomes. Our work is among the first to introduce and discuss the effects of TMT’s expertise in comprehensive and intuitive decision processes on firm’s social performance.
Research Implications
Our work contributes to corporate social responsibility and strategic decision making (SDM) process literature by bringing to the fore fundamental decision processes that can enhance organizational responses to social demands. In addition, our work expanded paradoxes of decision making to the corporate social responsibility literature to highlight that intuitive and rational decision processes can be considered simultaneously to create the best outcomes.
Practical Implications
The better we understand how TMT decision process contributes to socially responsible decisions, the more we are equipped to promote and support corporate social responsibility and performance.
keywords: Corporate social performance; strategic decision making; decision process; comprehensiveness; intuition; paradox perspective