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The relationship between corporate governance and corporate social behavior: a structural equation model analysis

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  • José Luis Fernández Sánchez
  • Ladislao Luna Sotorrío
  • Elisa Baraibar Díez

Abstract

This paper extends previous research in corporate social responsibility from a corporate governance perspective. Through a two‐step procedure, this research develops a measurement model to measure the unobservable variable of social sensibility of corporate governance (SSCG) and tests empirically the effect of this variable on corporate social behavior using a structural model. Both models are estimated applying Full Information Maximum Likelihood (FIML) and Bayesian methods for the 125 listed companies of the Spanish Continuous Stock Market. Two important conclusions are obtained of this research: first, a firm's SSCG can be measured through two different factors (the independence and pluralism of Boards and the ownership power), and second, there is a direct relationship between the firm's social sensibility of corporate governance and its social behavior. Copyright © 2010 John Wiley & Sons, Ltd and ERP Environment.

Suggested Citation

  • José Luis Fernández Sánchez & Ladislao Luna Sotorrío & Elisa Baraibar Díez, 2011. "The relationship between corporate governance and corporate social behavior: a structural equation model analysis," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 18(2), pages 91-101, March.
    • Handle: RePEc:wly:corsem:v:18:y:2011:i:2:p:91-101
    DOI: 10.1002/csr.244
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    Cited by:

    1. Francesco Calza & Giorgia Profumo & Ilaria Tutore, 2016. "Corporate Ownership and Environmental Proactivity," Business Strategy and the Environment, Wiley Blackwell, vol. 25(6), pages 369-389, September.
    2. María Consuelo Pucheta‐Martínez & Isabel Gallego‐Álvarez, 2018. "Environmental reporting policy and corporate structures: An international analysis," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(5), pages 788-798, September.
    3. Sara De Masi & Agnieszka Słomka‐Gołębiowska & Claudio Becagli & Andrea Paci, 2021. "Toward sustainable corporate behavior: The effect of the critical mass of female directors on environmental, social, and governance disclosure," Business Strategy and the Environment, Wiley Blackwell, vol. 30(4), pages 1865-1878, May.
    4. Astrid Rudyanto, 2017. "State Ownership, Family Ownership, and Sustainability Report Quality, The Moderating Role of Board Effectiveness," GATR Journals afr129, Global Academy of Training and Research (GATR) Enterprise.
    5. Shaista Wasiuzzaman & Ali Uyar & Cemil Kuzey & Abdullah S. Karaman, 2022. "Corporate social responsibility: Is it a matter of slack financial resources or strategy or both?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 2444-2466, September.
    6. Lozano, M. Belén & Martínez-Ferrero, Jennifer, 2022. "Do emerging and developed countries differ in terms of sustainable performance? Analysis of board, ownership and country-level factors," Research in International Business and Finance, Elsevier, vol. 62(C).

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