Board competences and CSR reporting: the moderating role of CEO power

Abstract

Studies addressing the impact of board capabilities on CSR reporting are scarce. The aim of this research is to provide further evidence of the impact that certain board capabilities, such as board specific skills, board tenure and board cultural diversity have on CSR disclosure. Additionally, the moderating impact of CEO power on the association between these three board competences and CSR reporting is examined. The paper draws on resource dependence theory and agency theory, which are highly relevant in analysing how board competence influences CSR disclosure. The findings show that board specific skills, board tenure and board cultural diversity have a positive effect on the disclosure of CSR information. Moreover, our evidence also shows that CEOs with greater power can negatively moderate the positive effect of the three board competences considered on CSR reporting. Los estudios que abordan el impacto de las capacidades del consejo de administración en la información sobre RSE son escasos. El objetivo de esta investigación es proporcionar más pruebas del impacto que tienen ciertas capacidades del consejo de administración en la divulgación de la RSC, como son las habilidades específicas del consejo, la permanencia en el cargo y la diversidad cultural del consejo. Además, se examina el impacto moderador del poder del CEO en la asociación entre estas tres competencias del consejo y la información sobre RSC. El artículo se basa en la teoría de la dependencia de los recursos y en la teoría de la agencia, que son muy pertinentes para analizar cómo las competencias del consejo de administración influyen en la divulgación de la RSE. Los resultados muestran que las competencias específicas del consejo, la permanencia en el cargo y la diversidad cultural del consejo tienen un efecto positivo en la divulgación de información sobre RSE. Además, nuestros datos también muestran que los consejeros delegados con mayor poder pueden moderar negativamente el efecto positivo de las tres competencias del consejo consideradas sobre la información de RSC.

Corporate Sustainability, Sustainable Governance, and Firm Value Efficiency: Evidence from Saudi Listed Companies

“…Current CG regulations often prioritize short-term goals, leading to a disconnect with CS efforts [12]. While CG is vital for supporting sustainability initiatives [13], traditional governance methods have limitations [14]. Research shows that typical governance factors like board diversity or independence do not necessarily promote the integration of sustainability issues [15].…”

Corporate governance and financial performance: Reframing their relationship in the context of climate change

“…The prevailing regulatory frames for corporate governance are mainly focused on the short term, which generates a “temporal dissonance” in the case of governance in relation to CC (Benjamin & Andreadakis, 2019, p. 14). Indeed, although corporate governance plays a key role in supporting a firm's orientation toward CC issues (Gallego‐Álvarez & Pucheta‐Martínez, 2022), the effectiveness of traditional governance mechanisms is proving to be limited (Cosma et al, 2022). Bui et al (2020) found that conventional governance elements, like board diversity or independence, do not affect further integration of CC issues.…”

Board diversity as a determinant of the social performance in the European banking sector

“…The two authors identified that board independence and the presence of a CSR committee are drivers of CSR disclosure, while CSR reporting is negatively affected by board gender diversity and CEO duality (Gallego-Álvarez and Pucheta-Martínez, 2019). Furthermore, specific board competencies, board tenure and cultural diversity positively influence CSR disclosure (Gallego-Álvarez and Pucheta-Martínez, 2022).…”