How CEO responsible leadership shapes corporate social responsibility and organization performance: the roles of organizational climates and CEO founder status

Abstract

Purpose This paper aims to investigate how chief executive officer (CEO) responsible leadership impacts corporate social responsibility (CSR) and organization performance by considering diverse organizational climates (including ethical, service and initiative climates) as mediators and CEO founder status as a moderator. Design/methodology/approach This study analyzed survey data from 212 service organizations in China with structural equation modeling. Findings The results clearly established that CEO responsible leadership played a crucial role in augmenting both CSR and organization performance by shaping positive organizational climates. Notably, CEO responsible leadership significantly fostered ethical, service and initiative climates. Furthermore, an ethical climate promoted CSR and organization performance, whereas service and initiative climates specifically enhanced organization performance. Additionally, responsible CEOs with founder status exhibited a higher propensity for enhancing ethical, service and initiative climates within service organizations. Practical implications Service organizations should take measures to build CEO responsible leadership, especially for CEOs with founder status. Furthermore, service organizations should motivate employees to reach consensus on ethical conducts, superior service and proactive approach to work. Originality/value First, the findings on CEO responsible leadership’s effects on CSR and organization performance extend the research on responsible leadership outcomes. Second, this paper adds to responsible leadership literature through exploring the mediating effects of ethical, service and initiative climates. Finally, the finding on the moderating role of founder CEOs offers a novel perspective regarding the boundary condition of the effects of CEO responsible leadership.