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class="row-fluid"> <div class="header-bar"> <!-- Overhead Map --> <div class="overhead-map-container"> <div class="overhead-map"> </div> </div> <div class="logo-container"> <h3 class="logo"></h3> <p class="magazine">_Drexel University Research Magazine</p> </div> <nav> <ul> <li id="nav-home"><a href="/"><i class="icon-reorder"></i></a></li> <li id="nav-contents"> <a href="/2023/contents">Contents</a> <div id="menu-contents-container" class="menu-dropdown issue-year-2023"> <div id="menu-contents-arrow" class="dropdown-arrow"></div> <div id="menu-contents" class="menu-dropdown-inner"> <dl id="menu-contents-2"> <dt> <div class="dept-x dept-body-of-research"></div> _Body of Research </dt> <dd> <a href="/article/the-path-to-lift-off"> Battery Science: Charging Forward </a> </dd> </dl> <dl id="menu-contents-3"> <dt> <div class="dept-x dept-culture-society"></div> _Culture / Society </dt> <dd> <a href="/article/beyond-bottom-lines"> Beyond Bottom Lines </a> </dd> <dd> <a 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method="get" action="https://exelmagazine.org/" style="margin: 0; padding: 0;"> <input id="quick-search" name="s" placeholder="Search" type="text" /> <span class="quick-search-icon icon-thin-search" onclick="jQuery('#qsearchform').submit();"></span> </form> </div> </nav> </div> </div> </header> <!-- end header --> <div id="top-pad"> </div> <div class="white-section story-section article-news"> <div class="exel-x"> <div class="exel-x-image"> </div> <h3>2023<br/><span class="article-department">_CULTURE SOCIETY</span> Governance</h3> </div> <div class="row-fluid news-header"> <h2 class="news-title">_Beyond Bottom Lines</h2><div class="news-excerpt">Profitability alone will not win the day in boardrooms. <span class="article-byline"></span></div> </div> <!-- Main Section --> <div class="row-fluid row-main"> <div class="article-content"> <div class="article-researcher"><div class="article-researcher-image"><img src="https://exelmagazine.org/wp-content/uploads/2023/06/Xin-Dai.png" alt="" /></div><h3>_Xin Dai</h3><p>Dai is an associate professor of accounting in the Bennett S. LeBow College of Business.</p></div> <div class="article-content-inner"> <p>The bottom line only takes a corporate executive so far. </p> <p>CEOs who lead effectively in financial and social responsibility spheres are most likely to prosper, according to a study co-authored by Xin Dai, an associate professor in the Bennett S. LeBow College of Business. </p> <p>Dai and her colleagues analyzed the impact of corporate performance in the environmental, social and governance measures filed with the Securities and Exchange Commission on CEO job prospects. The team found that executives will most likely exit when a firm shows declines in those metrics. Tracking departing CEOs’ subsequent employment records, the researchers found that executives who have led companies with strong social performance quickly find offers at larger firms that provide higher compensation. </p> <blockquote><p> <img decoding="async" src="https://exelmagazine.org/wp-content/uploads/2023/06/EXEL2023_Web_sidebars_BeyondBottomLines.jpg"></p> <h3> </h3> <h4>The Global Sustainable Alliance estimated in 2020 that the investment industry managed $35.3 trillion of sustainable investment assets, an increase of 15% in two years, equating to 36% of all professionally managed assets worldwide.</h4> </blockquote> <p>After controlling for financial operations, Dai and colleagues Feng Gao of Rutgers University, Ling Lei Lisic of the Virginia Polytechnic Institute and State University, and Ivy Zhang of the University of California show that CEO turnover is faster when their firms decline on measures such as the environment, community impact, diversity, human rights, employees and products.</p> <p>Executive turnover slows when performance improves in those areas. The team deemed declines or improvements as significant when the corporate social responsibility (CSR) performance of a firm moves from the top to the bottom, or from the bottom to the top quartile. </p> <p>Their study, appearing in the <em><a href="https://link.springer.com/article/10.1007/s11142-021-09643-3">Review of Accounting Studies</a></em> in 2023, suggests that boards view good social performance as a positive indicator of CEO ability. </p> <div class="social-button-container"> <a target="_blank" href="http://www.facebook.com/sharer.php?u=https://exelmagazine.org/article/beyond-bottom-lines/&t=Beyond Bottom Lines"><span class="icon icon-facebook-sign"></span></a> <a target="_blank" href="http://twitter.com/home?status=Currently%20reading%3A%20%40DrexelUniv%27s%20EXEL%20Magazine%20https%3A%2F%2Fexelmagazine.org%2Farticle%2Fbeyond-bottom-lines%2F" title="Click to share this post on Twitter"><span class="icon icon-twitter-sign"></span></a> </div> </div> </div> </div> <!-- end row --> </div> <script type="text/javascript">;(function(window, document, undefined, $) {$(document).ready(function(){ $('h6').fitText('.3');$(".article-content-inner p:nth-child(1)").initialLetter({ initialLetter: "dropped" });var exel_paras = 1; $(".article-content-inner p").each(function(){ $(this).addClass("article-paragraph-" + exel_paras); exel_paras = exel_paras + 1; });var exel_attachments = []; var i = ""; for (x in exel_attachments){ if (exel_attachments[x]["post_title"].toLowerCase()=="none"){ i = '<div class="article-main-image"><img src="'+exel_attachments[x]["large_image"][0] + '" /></div>'; } else { i = '<div class="article-main-image"><img src="'+exel_attachments[x]["large_image"][0] + '" /><div class="article-main-image-content"><h3>' + exel_attachments[x]["post_title"] + '</h3><p>' + exel_attachments[x]["post_content"] + '</p></div></div>'; } switch(x){ case "1": $(".article-paragraph-3").after(i); break; case "2": $(".article-paragraph-6").after(i); break; case "3": $(".article-paragraph-9").after(i); break; case "4": $(".article-paragraph-12").after(i); break; case "5": $(".article-paragraph-15").after(i); break; case "6": $(".article-paragraph-19").after(i); break; case "7": $(".article-paragraph-22").after(i); break; case "8": $(".article-paragraph-25").after(i); break; case "9": $(".article-paragraph-30").after(i); break; }; }$(".article-main-image").fadeIn("slow");});})(window, document, undefined, jQuery);</script> </div> <footer> <div class="row-fluid row-footer"> <div class="span3 footer-identity-container"> <img src="/wp-content/themes/exel/a/i/drexel-logo-white.png?v=32" alt="Drexel University" id="footer-identity"> </div> <div class="span3"> <dl> <dt>Drexel University</dt> <dd>3141 Chestnut Street</dd> <dd>Philadelphia, PA 19104</dd> <dd>215-895-2000</dd> <dd>© Copyright 2023 All Rights Reserved.</dd> </dl> </div> <div class="span3"> <dl> <dt>Quick Links</dt> <dd><a href="http://www.drexel.edu">Drexel Homepage</a></dd> <dd><a href="http://www.drexel.edu/research/">Drexel Research & Innovation</a></dd> <dd><a href="http://www.drexel.edu/academics/schools/">Drexel Colleges & Schools</a></dd> <dd><a href="http://drexel.edu/provost/">Drexel Office of the Provost</a></dd> </dl> </div> <div class="span2 exel-links"> <dl> <dt>Exel Magazine</dt> <dd><a href="/about/">About</a></dd> <dd><a href="https://drexel.edu/privacy">Privacy Policy</a></dd> <dd><a href="/letter/">Letter from President</a></dd> <dd><a href="/contact/">Contact</a></dd> </dl> </div> </div> </footer> <!-- <link rel="stylesheet" href="/wp-content/themes/exel/a/css/royalslider.css" type="text/css" media="all"> <link rel="stylesheet" href="/wp-content/themes/exel/a/css/rs-default.css" type="text/css" media="all"> --> <!-- HFCM by 99 Robots - Snippet # 2: GTM - body --> <!-- Google Tag Manager --> <noscript><iframe src="//www.googletagmanager.com/ns.html?id=GTM-TJCKC2" height="0" width="0" style="display:none;visibility:hidden"></iframe></noscript> <!-- End Google Tag Manager --> <!-- /end HFCM by 99 Robots --> <script type="text/javascript"> (function(i,s,o,g,r,a,m){i['GoogleAnalyticsObject']=r;i[r]=i[r]||function(){ (i[r].q=i[r].q||[]).push(arguments)},i[r].l=1*new Date();a=s.createElement(o), m=s.getElementsByTagName(o)[0];a.async=1;a.src=g;m.parentNode.insertBefore(a,m) })(window,document,'script','//www.google-analytics.com/analytics.js','ga'); ga('create', 'UA-33235850-1', 'auto'); ga('send', 'pageview'); </script> </body> </html>