Do Board Expertise and Networked Boards affect Environmental Performance?

Swarnodeep Homroy*, Aurelie Slechten

*Bijbehorende auteur voor dit werk

    OnderzoeksoutputAcademicpeer review

    14 Citaten (Scopus)
    379 Downloads (Pure)

    Samenvatting

    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 behaviour. 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.
    Originele taal-2English
    Pagina's (van-tot)269–292
    Aantal pagina's24
    TijdschriftJournal of Business Ethics
    Volume158
    Nummer van het tijdschrift1
    DOI's
    StatusPublished - aug-2019

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