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CSR committees and their effect on green practices

Author

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  • Vuong Ngoc Bao

    (Graduate School of Humanities and Social Sciences, Hiroshima University, 1-1-89 Higashi-Senda, Naka-ku, Hiroshima 730-0053, Japan)

Abstract

This paper explores the relationship between the presence of corporate social responsibility (CSR) committees and the implementation of corporate green practices. Using data from 445 non-financial Japanese firms from 2010 to 2021, we find a positive impact of such sustainability committees on both integrated and three individual aspects of green initiatives, including internal pollution prevention, green supply chain management, and green product innovation. In addition, our evidence demonstrates a variation in the CSR committees—green practices nexus across diverse groups of firms, based on their exposures to environmental risks. Finally, we claim that CSR-linked compensation and CSR strategy can explain how CSR committees affect firms’ eco-friendly practices. Generally, our study confirms the crucial role of a governance mechanism—CSR committees— that business organisations and policymakers can exploit to promote sustainable behaviours.

Suggested Citation

  • Vuong Ngoc Bao, 2024. "CSR committees and their effect on green practices," Economics and Business Review, Sciendo, vol. 10(3), pages 84-111.
    • Handle: RePEc:vrs:ecobur:v:10:y:2024:i:3:p:84-111:n:1007
    DOI: 10.18559/ebr.2024.3.1548
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    References listed on IDEAS

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    1. Andrew King & Michael Lenox, 2002. "Exploring the Locus of Profitable Pollution Reduction," Management Science, INFORMS, vol. 48(2), pages 289-299, February.
    2. Jae-Joon Han & Hyun Jeong Kim & Jeongmin Yu, 2016. "Empirical study on relationship between corporate social responsibility and financial performance in Korea," Asian Journal of Sustainability and Social Responsibility, Springer, vol. 1(1), pages 61-76, December.
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    More about this item

    Keywords

    CSR committees; green practices; environmentally sensitive sectors; CSR-linked compensation; CSR strategy;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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