Building on the managerial power view, this paper aims to determine the impact of marketing department power (MDP) on corporate social irresponsibility (CSI), taking into account internal marketing strategic decisions and the external market environment.
This study is based on a panel dataset of Chinese listed firms and employs the two-stage least squares (2SLS) method for the analysis.
This study finds a U-shaped relationship between MDP and CSI. Moreover, the relationship is steeper in highly diversified firms, while it becomes flatter for firms situated in regions with more developed non-state economies.
This study extends MDP research into corporate social performance, advances CSI research by identifying MDP as a key antecedent and introduces a power-based perspective to highlight the marketing function’s role in CSI. It also enriches the dialogue between marketing practices and business ethics in China by examining internal strategic decisions and external market environments as boundary conditions.
Corporate executives need to recognize the U-shaped impact of MDP on CSI. Top executives should seek an optimal balance of power structure among the TMT and grant the marketing department a moderate level of organizational power among all functional units. Additionally, they should acknowledge that the impact of MDP on CSI varies across firms adopting distinct marketing strategies and depends on external market environments.
This study sheds new light on marketing and business ethics research by highlighting the double-edged sword role of MDP in governing CSI.
