She Strengthens

The Hidden Influence of Family on Corporate Social Responsibility

It’s often said that people only take notice of issues that directly impact their finances, personal space, or loved ones. A study published in the Harvard Business Review suggests that this phenomenon extends to the corporate world, where CEOs with daughters are more likely to lead socially responsible firms.

A Surprising Correlation

Researchers found that companies headed by CEOs with daughters demonstrated a higher level of corporate social responsibility (CSR) than those without daughters. This correlation held true even after controlling for other factors. The study’s findings suggest that having a daughter can instill a sense of empathy and social awareness in CEOs, leading to more responsible business practices.

The “Daughter Effect”

According to Henrik Cronqvist, one of the study’s authors, the presence of a daughter can influence a CEO’s decisions and priorities. Companies run by executives with female children tend to rate higher on measures of diversity, employee relations, and environmental stewardship. They also tend to spend more on CSR initiatives than the median.

A Theory Behind the Phenomenon

Cronqvist proposes that women tend to care more about the well-being of others and society, and that having a daughter can increase these sympathies in parents. This theory suggests that the “daughter effect” is not just a coincidence, but rather a result of the emotional connection between parents and their children.

Targeting the Right Partners

For organizations seeking to promote social change, CEOs with daughters may be the ideal partners. Not only do they have the power to make decisions, but they may also be personally invested in promoting women’s leadership and empowerment. By targeting these individuals, organizations can tap into a powerful motivator: the desire to create a better future for their own daughters.

Creating Support Systems for All Employees

As organizations strive to make a positive impact, it’s essential to create support systems that allow all employees to thrive. This includes providing opportunities for women’s leadership training and development, as well as fostering a culture of inclusivity and social responsibility. By doing so, organizations can harness the power of the “daughter effect” and create a brighter future for all.