Corporate governance and environmental performance: is there really a link?

TLDR

Corporate governance scholars increasingly focus on firms’ social and environmental performance, yet empirical research remains fragmented and contradictory. The study adopts a fact‑based approach to comprehensively examine how owners, managers, and boards interact to influence firms’ environmental performance. The authors analyze governance practices and discuss their implications for theory. © 2012 John Wiley & Sons, Ltd.

Abstract

Corporate governance scholars are increasingly interested in firms' social and environmental performance. Empirical research in this area, however, has moved forward in an uncoordinated fashion, producing fragmented and contradictory results. Our paper seeks to address this situation by adopting a fact-based research approach that comprehensively explores the link between corporate governance and environmental performance. Specifically, we aim to understand how the relationships between and among the firms' owners, managers, and boards of directors influence environmental performance. We are particularly interested in understanding the interactions among these three key sets of actors. In the end, we offer some observations about governance practices and discuss the implications for theory. Copyright © 2012 John Wiley & Sons, Ltd.