Good governance boosts companies’ CSR performance
Study concludes that “corporate board reforms… appear to have a positive spillover for non-financial stakeholders”.
Image: Freedomz/Shutterstock
There is much talk about companies improving their treatment of the environment and people—what is often called corporate social responsibility (CSR). And there has been much debate about how this can been achieved. But new research suggests that good old-fashioned quality corporate governance can help work wonders.
Based on a dataset of more than 20,000 observations of 3,514 companies in 34 countries, a team of academics based in Canada and Hong Kong suggests that governance reforms that address classic governance issues such as audit committees and auditor independence, as well as separating the roles of chairs and chief executives, ca
For thoughtful journalism, expert insights on corporate governance and an extensive library of reports, guides and tools to help boards and directors navigate the complexities of their roles, subscribe to Board Agenda
Related Stories
-
Shareholder proposals gain ‘traction’ during US proxy season
Research reveals that average backing for shareholder proposals is on the rise, indicating that institutional investors are giving them more support.
-
ITV’s Crozier takes board role at Whitbread
Television chief Adam Crozier takes first non-executive role after revealing he is to quit ITV.
-
Will a private company governance code really duck executive pay?
James Wates has made emphatic statements on the role of executive pay in the forthcoming governance code for private companies. But what do they mean?
