The determinants of corporate social responsibility (CSR) committee: executive compensation, CSR-based incentives and ESG performance
Abstract
Purpose
This paper aims to investigate whether executive compensation, corporate social responsibility (CSR)-based incentives, environmental social and governance (ESG) performance and firm performance are the significant predictors of CSR committees, in addition to CEO, firm and corporate governance characteristics, from the tenet of stakeholder and managerial power theories.
Design/methodology/approach
Switzerland is an exemplary country from the perspective of corporate governance and executive compensation. This empirical study includes a panel data set of listed Swiss companies, so fixed-effect logistic regression has been used.
Findings
It has been found that the companies that offer CSR-based incentives and higher compensation to their CEOs and have better ESG performance are more likely to have CSR committees.
Practical implications
This empirical paper fills the gap in the literature, guides practitioners about the factors that influence the creation and efficiency of CSR committees, and inspires regulatory bodies to ponder on a mandatory CSR committee to form resilient and sustainable organizations worldwide.
Social implications
COVID-19 has re-emphasized the prominence of sustainability and the stakeholder approach. Thus, this paper indicates that CSR committees require the adaption and implementation of a holistic sustainability policy that integrates both external and internal factors and thereby provides a whole process for sustainability issues.
Originality/value
The impact of CSR committees on corporate social performance (CSP) has already been investigated. However, the predictors of CSR committees have been less scrutinized in the literature.
Keywords
Acknowledgements
Conflict of Interest: The authors declare that she has no conflict of interest.
Funding: The authors declare that this study was not funded by any organizations.
Ethical Standards: The authors declare that this study complies with ethical standards.
Informed Consent: The authors declare that this research does not involve humans and/or animals.
Citation
Aldogan Eklund, M. and Pinheiro, P. (2024), "The determinants of corporate social responsibility (CSR) committee: executive compensation, CSR-based incentives and ESG performance", Social Responsibility Journal, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/SRJ-07-2022-0303
Publisher
:Emerald Publishing Limited
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