Board Capital and CEO Power Configurations to Promote ESG Performance: The Case of the European Banking Industry

IF 8.3 2区管理学 Q1 BUSINESS

Corporate Social Responsibility and Environmental Management Pub Date : 2025-01-06 DOI:10.1002/csr.3106

Nieves Remo-Diez, Cristina Mendaña-Cuervo, Mar Arenas-Parra

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Abstract

Board capital and CEOs are powerful actors in improving companies' ability to implement effective sustainability strategies, balance stakeholder interests, and align corporate governance with sustainable objectives. This ultimately leads to higher environmental, social, and governance (ESG) scores. This study explores the combined effect of board capital (specific skills, tenure, gender diversity, and affiliations) and CEO power (formal and informal) in achieving high ESG performance by linking resource dependence theory to complexity theory. Using a qualitative fuzzy-set comparative analysis and data on European banks from 2018 to 2020, we find that regardless of the CEO's formal power, banks need an informally powerful CEO or board members with important advisory capabilities for managers in their decision-making activities. In contrast, a powerful CEO, both formal and informal, reduces the effect of board capital in terms of ESG disclosures. The argument that “one size” does not fit all is confirmed. It offers valuable insights into strategic decision-makers and banking supervisory authorities when setting and monitoring guidelines for board composition.

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董事会资本和CEO权力配置促进ESG绩效：以欧洲银行业为例

董事会资本和首席执行官是提高公司实施有效可持续发展战略、平衡利益相关者利益、使公司治理与可持续发展目标保持一致的能力的有力参与者。这最终会导致更高的环境、社会和治理（ESG）得分。本研究通过将资源依赖理论与复杂性理论联系起来，探讨董事会资本（特定技能、任期、性别多样性和从属关系）和CEO权力（正式和非正式）对实现ESG高绩效的综合影响。通过定性模糊集比较分析和2018 - 2020年欧洲银行的数据，我们发现，无论CEO的正式权力如何，银行都需要一位具有非正式权力的CEO或董事会成员，他们在管理者的决策活动中具有重要的咨询能力。相比之下，强势的CEO（无论是正式的还是非正式的）会降低董事会资本对ESG披露的影响。“一刀切”不适合所有人的论点得到了证实。它为战略决策者和银行监管机构在制定和监督董事会组成指导方针时提供了宝贵的见解。

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来源期刊

Corporate Social Responsibility and Environmental Management Multiple-

CiteScore

17.20

自引率

16.30%

发文量

189

期刊介绍： Corporate Social Responsibility and Environmental Management is a journal that publishes both theoretical and practical contributions related to the social and environmental responsibilities of businesses in the context of sustainable development. It covers a wide range of topics, including tools and practices associated with these responsibilities, case studies, and cross-country surveys of best practices. The journal aims to help organizations improve their performance and accountability in these areas. The main focus of the journal is on research and practical advice for the development and assessment of social responsibility and environmental tools. It also features practical case studies and evaluates the strengths and weaknesses of different approaches to sustainability. The journal encourages the discussion and debate of sustainability issues and closely monitors the demands of various stakeholder groups. Corporate Social Responsibility and Environmental Management is a refereed journal, meaning that all contributions undergo a rigorous review process. It seeks high-quality contributions that appeal to a diverse audience from various disciplines.