CSR and CEO’s Moral Reasoning in the Automotive Industry in the Era of COVID-19

What is it about?

MAIN IDEA: Moral challenges in crisis: how COVID-19 shaped CEO ethics and CSR in the automotive industry. This study investigates how the COVID-19 pandemic, as a scenario of high moral intensity, has influenced the moral reasoning of CEOs in the automotive industry. By analyzing CEO letters from the top 15 automotive companies before and after the pandemic outbreak, the researchers applied Weber’s method to categorize moral reasoning and examined its relationship with corporate social responsibility (CSR) responses during the crisis and long-term CSR plans. The concept of "moral paralysis" is particularly striking, as it reflects the challenges CEOs face in balancing immediate business pressures with long-term societal responsibilities. The findings reveal a predominant "moral paralysis," where most positive actions were short-term philanthropic responses rather than sustained ethical improvements.

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Photo by Erik Mclean on Unsplash

Photo by Erik Mclean on Unsplash

Why is it important?

This research is significant as it highlights the interplay between moral reasoning and corporate behavior during a global crisis. The study sheds light on how CEOs’ ethical decision-making impacts their companies' CSR strategies, particularly during challenging times like the COVID-19 pandemic. It underscores the need for stronger moral leadership to drive long-term, meaningful CSR initiatives. The findings are valuable not only for CEOs and managers but also for stakeholders and policymakers seeking to enhance corporate accountability and ethical performance.

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