Moderating role of CSR strategy and sustainability committee on board attributes and corporate sustainability performance in the energy sector

The 2030 agenda for sustainable development establishes a new global sustainability target, with corporations expected to significantly contribute by implementing sustainable practices. One strategy for engaging corporations in sustainable practice focuses on corporate governance (CG) mechanisms such as the board of directors (BOD). Many corporations have reshaped their corporate strategies and board structure due to environmental deterioration, depletion of natural resources, and societal problems. Based on the premise of strategic choice, agency and resource dependency theories, this study investigates the relationship between the determinants of the BOD attributes and corporate sustainability performance (CSP), with a specific focus on investigating whether the presence of CSR strategy and distinct attributes of standalone board-level corporate sustainability committees strengthens this relationship. The study used Thomson Reuters sustainability performance scores and a sample of 335 energy sector corporations from 44 countries. Utilizing a two-step system generalized method of moment (GMM) estimation, the findings show a positive and significant relationship between CSP and board size, different positions for CEO and chairperson roles, and interlocking directors on board. The findings also show that having more independent directors on a board lowers CSP, while board gender and cultural diversity do not affect CSP. The findings of this study also confirmed that BOD attributes positively affect CSP with the moderating role of CSR strategy. Furthermore, the corporate sustainability committee size and frequency of corporate sustainability committee meetings strengthen the relationship between BOD attributes and CSP in the energy sector. This study adds to the body of knowledge on CG attributes, such as the BOD's role, by explaining how BOD affect the CSP of the energy sector. The implications of these findings to policymakers on the energy sector corporations are not limited to improving CSP via formulating and implementing specific CG strategies and policies that are beneficial but also provide explicit information on how corporate energy sectors may adopt sustainable projects and appropriate governance structure to solve social and environmental issues.

Text 125342 - Full Text.pdf Download (5MB) Text SPE 2023 30 - Declaration Form.pdf Restricted to Repository staff only Download (1MB) Text SPE 2023 30 - Full Text.pdf Restricted to Repository staff only Download (5MB) Official URL or Download Paper: http://ethesis.upm.edu.my/id/eprint/18852

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