Abstract

Why do top executives differ in their values, and how is this heterogeneity reflected in organizational outcomes? To answer this question, we build on the dual aspect of an important CEO characteristic, namely age, to simultaneously examine how stable differences in values between executives and changes in values within executives over time affect firms’ social and environmental practices (SEPs). On the one hand, executives’ concern for stakeholders changes with age as they advance through their careers and thereby shift their priorities. On the other hand, age also reflects stable differences in values between adjacent birth cohorts who grew up in different historical periods. In this study, we integrate time-stable and time-variant perspectives on executives’ values by theorizing about how age simultaneously determines which SEPs initiatives CEOs prioritize more and the extent to which CEOs invest in SEPs. Our study provides important implications for research focused on the relationship between executives’ values and organizational outcomes.

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