Do Board Expertise and Networked Boards Affect Environmental Performance?

Homroy, Swarnodeep and Slechten, Aurelie Cecile Dominique (2019) Do Board Expertise and Networked Boards Affect Environmental Performance? Journal of Business Ethics, 158 (1). pp. 269-292. ISSN 0167-4544

Full text not available from this repository.

Abstract

We examine the resource provision role of the board of directors in ensuring substantive corporate sustainability practices. Specifically, we examine two channels of resource provision (i.e., the presence of non-executive directors with previous experience in environmental issues—EEDs—and network connections of EEDs) that can affect a firm’s ethical and environmental behavior. Using greenhouse gas (GHG) emissions data from FTSE 350 firms, as a measure of environmental performance, we show that the presence of EEDs on the board is associated with lower GHG emissions. Further, firms with better-networked EEDs have better environmental performance. A possible mechanism is that firms with EEDs invest more in environmental technology. These results suggest that, in addition to the traditional role of shareholder value maximization, the board of directors also caters to the interests of wider stakeholders of the firm by facilitating substantive ethical practices.

Item Type:
Journal Article
Journal or Publication Title:
Journal of Business Ethics
Uncontrolled Keywords:
/dk/atira/pure/subjectarea/asjc/3300/3308
Subjects:
ID Code:
89631
Deposited By:
Deposited On:
12 Jan 2018 09:10
Refereed?:
Yes
Published?:
Published
Last Modified:
20 Oct 2020 05:42