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Zhejia Ling, assistant accounting professor at Cal State Fullerton, based on her research, believes that a company CEO who is involved in pro-social responsibility has a greater chance of making beneficial corporate decisions and being better leaders.
A prosocial person is someone who is concerned about the well-being of others. In an upcoming study that will appear in the Review of Accounting Studies, Ling discovered that executives engaging in “prosocial” behavior – that is, supporting philanthropic organizations or similar activities that help others – are more likely to make corporate decisions that benefit a wide range of stakeholders, including employees, customers and the society and increase corporate value. Because a prosocial CEO has a positive effect on a range of stakeholders, this type of leadership can uplift and guide the organization effectively.
Ling Said: “Prosocial CEOs make decisions that have positive impacts on different aspects of the company, which include decreased employee turnover, higher customer satisfaction and more socially responsible activities.”
“It is part of who a person is. It is an innate personality trait developed as early as childhood and built over time.”