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HomePaperCorporate Social Responsibility Committee: International Evidence

Corporate Social Responsibility Committee: International Evidence

1 August 2023
Authors: Yuxia Zou (Nanyang Technological University), Xi Li (London School of Economics and Political Science) and Jenny Chu (University of Cambridge)
Presenter: Yuxia Zou (Nanyang Technological University)
Abstract:

We provide worldwide, large-sample evidence on an innovation in corporate governance: the creation of a separate committee that oversees corporate social responsibility (CSR) on corporate boards. Our evidence suggests that a firm’s decision to adopt a CSR committee is shaped by its internal needs to have a separate CSR committee as well as external demand for sustainability from various stakeholders. We find that firms implement environmental and social initiatives following the establishment of a CSR committee and experience improvements in CSR performance. Interestingly, we find that while CSR committees on average do not enhance financial performance, having more directors with CSR-related experience on the committee helps firms improve financial performance in the long run.

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