Take That Boys! Study: Baby Girls Sway CEO Dads Company Policies

A recent study highlighted by the Harvard Business Review showed that CEOs with daughters ran more socially responsible companies. Image Source: sustainabilitynext.inSo the study showed that companies with CEOs who have daughters get 12 percent higher ratings for being socially responsible and these companies tend to spend, on an average, an extra 13.4 percent of the firm’s net income on CSR programmes.

How is this for a good fact to start off your work week?

A recent study highlighted by the Harvard Business Review showed that CEOs with daughters ran more socially responsible companies. This basically means that the gender of a CEO’s child affects the social character of the company.

Isn’t that absurdly cool?

The study was done byÂ Henrik Cronqvist, a professor at University of Miami’s business school and Frank Yu, of ChinaÂ Europe International Business School. Together they used databases and Internet searches to come up with their own list of S&P 500 CEOs who have children. They then cross referenced those names with corporate social responsibility data from an analytics firm from 1992 -2012.

The study found that companies run by male executives with female children rated higher for diversity, employee relations and eco-friendliness. The reason for this they concluded was that while it is common knowledge that parents influence their children, it is also true that children have an impact on how and what parents think. CEOs with daughters tend to be under an effect known as ‘female socialization hypothesis’.

Image Source:Â sustainabilitynext.in

So the study showed that companies with CEOs who have daughtersÂ get 12 percent higher ratings for being socially responsible and these companies tend to spend, on an average, an extraÂ 13.4 percent of the firm’s net income on CSR programmes.

“Having a daughter seems to make the top executives of publicly traded companies in the U.S. a bit softer, specifically in context of social responsibility,” said Henrik Cronqvist. “They seem to care more about others than just shareholders. Having a daughter seems to push the executives to care more about other stakeholders.”

While we are so excited to hear about the effect girls have on their powerful daddys we hope there are more studies like these in the offing. If not anything else, it makes for interesting reading, doesn’t it?

Donâ€™tÂ forget to follow us on Facebook,Â TwitterÂ &Â InstagramÂ or subscribe to ourÂ Youtube ChannelÂ forÂ more information.

Image Source:Â www.timeanddate.com