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Do Board Expertise and Networked Boards Affect Environmental Performance?

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Do Board Expertise and Networked Boards Affect Environmental Performance? / Homroy, Swarnodeep; Slechten, Aurelie Cecile Dominique.

In: Journal of Business Ethics, Vol. 158, No. 1, 01.08.2019, p. 269-292.

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@article{72ea62d505924278b2fa4156d9c25867,
title = "Do Board Expertise and Networked Boards Affect Environmental Performance?",
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{\textquoteright}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.",
keywords = "Director Expertise, Director Networks, Emissions, Environmental Performance",
author = "Swarnodeep Homroy and Slechten, {Aurelie Cecile Dominique}",
year = "2019",
month = aug
day = "1",
doi = "10.1007/s10551-017-3769-y",
language = "English",
volume = "158",
pages = "269--292",
journal = "Journal of Business Ethics",
issn = "0167-4544",
publisher = "Springer Netherlands",
number = "1",

}

RIS

TY - JOUR

T1 - Do Board Expertise and Networked Boards Affect Environmental Performance?

AU - Homroy, Swarnodeep

AU - Slechten, Aurelie Cecile Dominique

PY - 2019/8/1

Y1 - 2019/8/1

N2 - 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.

AB - 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.

KW - Director Expertise

KW - Director Networks

KW - Emissions

KW - Environmental Performance

U2 - 10.1007/s10551-017-3769-y

DO - 10.1007/s10551-017-3769-y

M3 - Journal article

VL - 158

SP - 269

EP - 292

JO - Journal of Business Ethics

JF - Journal of Business Ethics

SN - 0167-4544

IS - 1

ER -