Translation of CEO’s Objectivism into Social Responsibility: The Role of Entrepreneurial Passion

Abstract

Enterprising individuals are often portrayed as rational actors who maximize their self-interests through business venturing. At the same time, a growing number of SMEs employ social responsibility and sustainability strategies, incorporating collective interests into their business agenda. Drawing on the entrepreneurial identity literature, objectivism (rational egoism) philosophical perspective, and the concept of entrepreneurial passion, this study sets out to analyze the interplay between rational and emotional aspects of CEO’s personal identity and address its implications for socially responsible behavior of his/her business. The research hypotheses are tested based on a sample of 333 Russian SMEs. The results suggest that CEOs whose personal identities are rooted in objectivism values, are less likely to develop social responsibility within their firms. At the same time, CEO’s entrepreneurial passion offsets the negative effect of objectivism on social responsiveness of the venture. Implications are discussed.