CEO GENDER AND ITS EFFECT ON CORPORATE SOCIAL RESPONSIBILITY AND THE PERCEPTION OF BUSINESS ETHICS

Abstract

Research background: There is a gender gap in decision-making process between men and women in executive positions. The results of multiple research studies suggest that women in executive positions are more likely to invest in corporate social responsibility compared to men in the same positions. Research also confirms a lower risk of corporate fraud, risk aversion, greater transparency, and higher levels of ethical behaviour when women are present in executive positions in the company. Most of the research conducted in this area has been carried out in the conditions of large and developed economies, and therefore we consider it necessary to verify their validity in the context of a small open economy. Purpose of the article: This article aims to verify the findings obtained in foreign research in the conditions of the Czech Republic. Specifically, we will focus on identifying the relationship between the gender of the CEO and the existence of corporate social responsibility and the gender of the CEO and the perception of the importance of business ethics. Methods: Considering the findings from the theoretical research, two hypotheses are formulated in the paper. To test the validity of these hypotheses, a data sample obtained via a questionnaire survey in one hundred large companies operating in the manufacturing industry in the Czech Republic is analysed. In addition to descriptive statistics, inferential statistics in the form of correlation analysis is used to verify the validity of the hypotheses. Findings & Value added: Within the analysed sample, the existence of the hypothesised relationships was confirmed. Therefore, if a woman was a CEO within the analysed sample of companies, there is a higher probability that the company will practice corporate social responsibility in some form. Furthermore, there was also a higher probability that female CEOs would perceive business ethics as more important than their male counterparts. The primary added value of this paper is the confirmation of the validity of foreign findings in these specific areas in the conditions of a small open economy.