THE INFLUENCE OF CSR COMMITTEE ON CORPORATE SUSTAINABILITY PERFORMANCE IN EUROPE
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The purpose of this study is to examine the influence of a board-level CSR committee on the corporate sustainability performance (CSP). Specifically, it is claimed that a presence of the CSR committee and the committee’s attributes such as gender and nationality diversity, independence, business experience, CSR expertise and social networks are positively related to CSP. Based on the unbalanced panel data sample of 269 multi-industry European firms during the period 2019–2021, the study employs pooled OLS regression modelling to explore these relationships. The findings suggest that the presence of the CSR committee is indeed related to more sustainable business conduct from both environmental and social perspectives, therefore providing support for agency and stakeholder theory. Furthermore, the evidence shows that companies having a larger proportion of directors with the CSR expertise in the committee are more likely to demonstrate a higher CSP. This finding provides a further support for resource dependency theory. The results of the study contribute to the literature on sustainability and corporate governance and could be of value to policy makers, firms, and their stakeholders by shedding more light on how corporate sustainable performance could be enhanced.
Faculteit der Managementwetenschappen