Are superstar directors effective in corporate social responsibility performance? An empirical analysis of sustainable development goals

Abstract

In this paper, I adopt a hand-collected sample of prestigious business award-winner directors based on four types of awards and use it to represent reputable directors.I examine how awardee directors influence corporate social responsibility performance (CSR) using multiple samples. The results show that with award-winner directors sitting on their boards, firms tend to have higher CSR scores. The findings are consistent in the propensity score matched sample and additional robustness tests. The findings suggest that reputable directors are effective in performing monitoring and advising duties, which in turn leads to better CSR performance.

Exploring the role of companies and sustainability disclosure in achieving sustainable development goals: A focus on zero hunger and social inclusion

“…Regarding the composition and role of the board, SDGs studies have provided evidence in line with those of previous studies demonstrating that sustainability disclosure is a function of the board's attributes (e. g. Michelon & Parbonetti, 2012). For instance, in an empirical study on SDGs, Cheng (2023) demonstrates that companies having boards in which award-winning directors participate have better CSR performance. In another study, Chen and Huang (2023) address SDG6 ("Clean water and sanitisation") and show that companies documenting the presence of a CSR committee in their reports document a water usage reduction as well.…”

“…First of all, relying on previous literature, we tested whether a more transparent board sustainability commitment disclosure is associated to better levels of SDG2 disclosures. Several studies have demonstrated the effects of the board composition on companies' disclosure (Chen & Huang, 2023; Cheng, 2023; Rosati & Faria, 2019b). We corroborate the finding that this variable is linked to higher quality in companies' sustainability disclosure, specifically SDG2‐related disclosure (H1).…”

“…Michelon & Parbonetti, 2012). For instance, in an empirical study on SDGs, Cheng (2023) demonstrates that companies having boards in which award‐winning directors participate have better CSR performance. In another study, Chen and Huang (2023) address SDG6 (“Clean water and sanitisation”) and show that companies documenting the presence of a CSR committee in their reports document a water usage reduction as well.…”

“…However, to test this relation we take into account the aforementioned other possible determinants of higher levels of SDGs’ disclosure. Therefore, we consider the characteristics of the board (Chen & Huang, 2023; Cheng, 2023; Pizzi et al, 2021; Rosati & Faria, 2019b), the adoption of sustainability standards guidelines (Pizzi et al, 2021; Rajic et al, 2022), reactiveness to environmental changes (Rajic et al, 2022), the industry (Poddar et al, 2019; Rajic et al, 2022) and control variables such as the size of the company and its profitability (Michelon et al, 2015; Michelon & Parbonetti, 2012; Pizzi et al, 2021). Moreover, we do not simply hypothesize only a direct relationship between social inclusion and SDGs disclosure, but considering that “governance is determinant to implement actions related to the SDGs and foster the collaboration between stakeholders in the achievement of the SDGs (Scharlemann et al, 2020)” (Diaz‐Sarachaga (2021a): 1321) we hypothesize the mediating role of social inclusion in fostering board achievement of better level of SDG disclosure (see Figure 1).…”

The purpose of the company beyond its position in the market: The new agent of social development

“…Various studies on this activity corroborate this idea. Cheng (2023) points out a correspondence between successful leaderships and the actions linked to the objectives set by the UN. In addition to this, competitiveness is influential with young managers, which stimulates the possibility of innovation, and implementation of actions corresponding to CSR (Chen et al, 2022).…”