Board interlocks and the diffusion of CSR reporting practices: The role of market development

Sun, Weizhang; Li, Xuan; Geng, Yanli; Jin-feng, Yang; Zhang, Yifei

doi:10.1002/csr.1887

Cited by 21 publications

(30 citation statements)

References 81 publications

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“…Firms are more likely to have a proactive environmental strategy if their boards have members from suppliers with similar strategies/performance (Ortiz‐de‐Mandojana, Aragón‐Correa, Delgado‐Ceballos, & Ferrón‐Vílchez, 2012). Multiple directorships also appear to enhance board members' expertise in environmental/CSR reporting (Rupley, Brown, & Marshall, 2012; Sun et al, 2020). Board interlocks facilitate the diffusion of CSR practices through imitation (Zou, Xie, Meng, & Yang, 2019).…”

Section: Theoretical Framework and Hypothesesmentioning

confidence: 99%

“…We expand the work of Ortiz‐de‐Mandojana and Aragon‐Correa (2015) by using a large panel sample that includes firms both in more and less environmentally impacting industries and test for the industry effects. By investigating a developed country, we also expand on the findings of Zou, Xie, Qi, and Yang (2019), Zou, Xie, Meng, and Yang (2019), and Sun, Li, Geng, Yang, and Zhang (2020), who investigate emerging economies. We find three sources of learning through board interlocks: (a) from industry peers, (b) from other industries, and (c) from the best GHG emissions performers.…”

Section: Introductionmentioning

confidence: 99%

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Board interlocks and greenhouse gas emissions

Jing

Mahmoudian

et al. 2020

Bus Strat Env

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Using resource dependence theory, we analyze board interlocks, their industry origin, and their relationship to firms' greenhouse gas (GHG) emissions. Interlocks create connections by having board members from one firm sit on other firms' boards, providing an avenue for sharing information and resources to aid in knowledge transfer and capability development. As firms face challenges for improved GHG emissions performance, they may look to their board members' connections to other firms to acquire needed resources. Using a sample of US Standard & Poor's (S&P) 1500 firms for years 2009 to 2018, we find that firms with a greater number of board interlocks achieve lower GHG emissions intensity. We also find that boards for the best performing companies have interlocks in the same industry, in other industries, and with firms leading in GHG emissions intensity, especially for firms in higher environmentally impacting industries, as they face greater emissions challenges.

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Section: Theoretical Framework and Hypothesesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Board interlocks and greenhouse gas emissions

Jing

Mahmoudian

et al. 2020

Bus Strat Env

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“…Therefore, board connectedness is an important mechanism to transfer knowledge in CSR activities and reporting into the firms and may play an allocative role in establishing corporate governance practices (Del Vecchio, 2010). Un et al (2019) find that board interlocks positively affect firms' CSR reporting. According to the above discussions, it is expected that interlocked boards are more likely to be engaged in CSR activities and reporting.…”

Section: Board Members' Interlock and Social Responsibility Growthmentioning

confidence: 99%

The relationship between board characteristics and social responsibility with firm innovation

Al-Maliki

Salehi

Kardan

2022

EJMBE

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PurposeThe present study aims to assess the potential impacts of board members' characteristics, including connectedness and independence, on the level of the firm's involvement in innovation and corporate social responsibility (CSR).Design/methodology/approachVariables of board members' interlock and independence are selected for measuring the board characteristics and their association with innovation. The range of disclosure of social responsibility (SR) of the firms inside and outside the industries is also analyzed through descriptive-correlational. The selected sample includes 280 firm-years listed firms on Iraq Stock Exchange during 2012–2017 and 1,026 firm-years on the Tehran Stock Exchange. The hypotheses are examined using multivariate regression models and panel data.FindingsThe observations show that board interlock and independence in both countries are willing to improve firms' innovation. Moreover, having controlled the industry index, the authors find that business environment innovation is willing to be transmitted into the firms through outside industry sources in Iran. In the Iraq country, regardless of industry index, the positive association between interlocked boards and firm innovation is established. Further analyses also articulate that board interlock is not considered a mechanism to transmit information and experiences about CSR activities.Originality/valueThis paper is a pioneer study to assess the relationship between board member characteristics and the firms' innovation and SR both in Iran and Iraq. Also, it extends the literature by considering the industry index as a significant source of knowledge and experience to gain more precise results. Therefore, the current paper may contribute to the development of knowledge in this field of study.

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“… Muttakin et al (2018) finds that board social capital is positively related to CSD, and high board centrality is positively related to social capital ( Larcker et al, 2013 ). Evidence from Sun et al (2020) find that board of interlocks, which is related to the concept of board centrality, has a positive influence on CSD in the Chinese market.…”

Section: Theoretical Background and Hypothesesmentioning

confidence: 99%

Board Network and CSR Decoupling: Evidence From China

et al. 2022

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This paper investigates the influence of board network centrality on corporate social responsibility (CSR) decoupling. CSR decoupling refers to the gap between corporate internal and external actions in CSR practices. Specifically, we measure CSR decoupling as the difference between corporate social disclosure (CSD) and corporate social performance (CSP). This paper uses a sample of Chinese A-share listed firms during 2009–2018, takes the technical dimension score (T-score) and content dimension score (C-score) of RKS ratings as proxies of CSD and CSP, and obtains CSR decoupling as the difference between CSD and CSP. Our results show that (1) board network centrality is positively related to over-decoupling in the pre-adoption period (2009–2014) of the new environmental law but negatively related to over-decoupling in the post-adoption period (2015–2018) and (2) centrality is not related to under-decoupling in the pre-adoption period but a significantly positive related in the post-adoption period. Our finding reveals a complex role of the board network in CSR practices in China.

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Board interlocks and the diffusion of CSR reporting practices: The role of market development

Cited by 21 publications

References 81 publications

Board interlocks and greenhouse gas emissions

Board interlocks and greenhouse gas emissions

The relationship between board characteristics and social responsibility with firm innovation

Board Network and CSR Decoupling: Evidence From China

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