Co-Opted Directors and Corporate Social Responsibility

Research output: Contribution to journalArticleScientificpeer-review

Abstract

This study examines the relationship between board co-option and corporate social responsibility (CSR) among U.S. firms. The results indicate that higher levels of board co-option are linked to weaker CSR performance, particularly in terms of environmental initiatives and diversity-related social programs. The negative association between board co-option and CSR is more pronounced in firms in which CEOs hold substantial power and short-term managerial compensation is prioritized and in industries characterized by higher information asymmetries. In contrast, independent, non-co-opted directors appointed before the incumbent CEO enhance engagement in CSR, highlighting their important role in fostering socially responsible corporate behavior.

Original languageEnglish
Article number0148558X251368673
Peer-reviewed scientific journalJournal of Accounting, Auditing and Finance
ISSN0148-558X
DOIs
Publication statusPublished - 20.08.2025
MoE publication typeA1 Journal article - refereed

Keywords

  • 512 Business and Management
  • board co-option
  • CEO power
  • CSR
  • environmental performance
  • social performance

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