This study examines how CEO values affect organizational performance. We examine organizational performance in terms of stakeholder-based performance (SBP) comprising four components of quality of goods and services, organizational justice, stakeholder affiliation and opportunity cost; and focus on one key CEO value orientation, specifically whether CEOs are “self-interested” or “other-regarding” in interactions with organizational stakeholders. We also hypothesize that the effect of CEO values on SBP is not direct, but indirect through the mediating factor of stakeholder culture. Data from 621 CEOs of not-for-profit (NFP) organizations in Australia are collected through a mail-based survey questionnaire, and analysed using structural equation modeling. The results support our hypotheses and have implications for organizational managers in creating and distributing stakeholder value in NFP organizations and potentially beyond the NFP context, as well as for future research concerned with how ethical characteristics of top managers affect organizational success.
- CEO values
- stakeholder-based performance
- stakeholder culture