Abstract
This paper examines whether a higher proportion of co-opted directors is more involved in Corporate Social Responsibility (CSR) decoupling practices. Co-opted directors refer to board directors hired during the tenure of the incumbent CEO. Meanwhile, CSR decoupling indicates the disparity between actual CSR engagements and CSR disclosure by the company. Using data for the US firms between 2002 and 2020, we find that firms with a higher proportion of co-opted directors engage more in CSR decoupling practices than those with lower proportions. These results remain robust when considering alternative proxies and employing various econometric techniques.
Details
Presentation Type
Paper Presentation in a Themed Session
Theme
Economic, Social, and Cultural Context
KEYWORDS
Keywords: Co-option, CSR Decoupling, Corporate Governance
