Abstract
Purpose. Managerial discretion is not clearly defined in the management literature. This study empirically explores the concept of managerial choice in the area of corporate social responsibility. Two factors were identified as being of paramount importance in predicting discretion: a "personal" component and an "environmental" component. Theoretical framework. Using the theories of Barnard, Simon, and Wood, connection between corporate social responsibility and the role of the manager as decision maker is blended and tested to account for what Montanari calls the "predisposition of managers." Methodology. Three instruments were used to measure the relationship among identified variables administered to a convenience sample of middle managers (N = 200): The Rotter Locus of Control, Trevino's Ethical Culture Questionnaire, and an original survey instrument developed by the author measuring managerial discretion. Findings. Locus of control and ethical culture accounted for approximately 15 percent of the variance in the self-report of managerial discretion in corporate social responsibility situations. This study did not find the interaction of the internal and external variables to be significant in predicting managerial discretion. Conclusions and recommendation. In demonstrating the significant role of the individual, this study has provided preliminary support for Wood's theory that discretion is a critical factor at the individual level of organizational decision making. Future research needs to explore and develop new corporate social responsibility models, concentrating on additional factors that predict managerial discretion beyond those presented here.