CORPORATE GOVERNANCE AND CORPORATE SOCIAL RESPONSIBILITY INTEGRITY: HOW BOARD CHARACTERISTICS INFLUENCE CSR DECOUPLING

Анотація

Purpose: This study examines how specific attributes of corporate governance influence Corporate Social Responsibility (CSR) decoupling, aiming to clarify the disconnect between declared CSR policies and actual practices. It explores how governance characteristics impact the alignment of CSR intentions with outcomes, providing insights into fostering genuine CSR integration within corporations. Design/methodology/approach: Using empirical data from publicly listed companies in China, this study investigates the role of governance attributes such as board independence, diversity, size, CEO duality, and the number of board committees in affecting CSR decoupling. Utilizing data from the China Stock Market & Accounting Research Database (CSMAR) and HEXUN, the study analyzes a sample of 2,676 companies with a total of 22,795 observations. The research leverages an econometric model to examine CSR decoupling as a function of these corporate governance variables, alongside control factors like company size and leverage. Findings: The study reveals that certain governance attributes, including board independence, supervisory board size, and CEO duality, significantly influence CSR decoupling. Independent directors and larger boards reduce CSR gaps, while CEO duality increases decoupling risks due to concentrated decision-making power. Conversely, attributes like board diversity and the number of board committees show mixed impacts, potentially limited by symbolic compliance. Research limitations/implications: Focusing on Chinese listed firms, these findings may vary in different governance contexts. Future studies could investigate similar dynamics across various industries or cultural settings to expand the findings. Practical implications: Understanding the influence of governance on CSR decoupling can help corporations and regulators design governance structures that enhance CSR transparency, enabling organizations to bridge the gap between CSR commitments and practices. Originality/value: This study advances CSR literature by examining CSR decoupling through a governance lens, emphasizing the importance of aligning governance attributes with CSR objectives to promote meaningful corporate responsibility.