Board Network Ties and Corporate Social Performance Alignment

• In Event: Effects of Corporate Social Responsibility

Abstract

This study examines the effect of board network ties on corporate social performance. Using board interlock as a proxy for network ties, we find evidence that the corporate social performance of two firms becomes closely aligned when the firms appoint the same members on their respective boards, consistent with the belief that board interlocks facilitate the diffusion of social practices. We also find that the ability of interlocking directors to facilitate knowledge transmission and the receptibility of the receiving board both affect the success of the social practice diffusion.

Authors

• KUAN-CHEN (K.C.) LIN, Central Michigan University

• Xiaobo Dong, University of Houston-Victoria