Does Superior Sustainability Governance Improve CSR Performance and CSR Disclosure?

• In Event: Research with an Impact on Scholarship: Auditing and Social Responsibility

Abstract

This paper investigates whether and how superior sustainability governance is associated with corporate social responsibility (CSR) performance and voluntary CSR disclosure. Using a sample of S&P 500 firms during 2005-2013, we find that the presence of CSR-related committees on boards of directors is associated with higher CSR ratings, i.e., increased CSR strengths, and reduced CSR concerns. In addition, we find that firms with superior sustainability governance are more likely to increase voluntary CSR disclosure in their 10-K reports. Finally, we conduct a difference-in-difference analysis, which corroborates our main finding. Overall, this study supports the notion that superior sustainability governance mechanisms are effective in improving CSR performance and transparency.

Authors

• Jun Guo, Rutgers University - Camden

• Rong Yang, Rochester Institute of Technology

• Yang Yu, Rochester Institute of Technology