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Do Titans Deliver the ESG Promise? Societal Recognition and Responsible Corporate Decisions

Farag, Hisham orcid logoORCID: 0000-0002-6110-7747, Koirala, Santosh orcid logoORCID: 0000-0002-0464-7376, Luo, Di and Rao, Sandeep orcid logoORCID: 0000-0001-7752-4492 (2024) Do Titans Deliver the ESG Promise? Societal Recognition and Responsible Corporate Decisions. British Journal Of Management . ISSN 1045-3172

Abstract
Distinguished societal recognition can influence corporate decision-makers to act responsibly. We exploit this unique sociological attribute of UK firm board members and examine the impact of honorary titles on the firm's environmental, social and governance (ESG) performances. Using the peerage and honorific titles of board members of public UK firms from 2002 to 2020, we demonstrate that firms wherein board members have a title of honour are associated with higher ESG performance. We also document a positive contagion effect of titleholders on other board members, which contributes to firms’ ESG performance. Our findings align with theories of resource dependence, upper echelons and peer effects postulations and highlight the importance of societal recognition in shaping corporate decisions towards sustainability.
Metadata
Item Type:Article (Published)
Refereed:Yes
Uncontrolled Keywords:ESG, Title of Honor, Social identity, Social influence, Peerage system, Honorific, Board characteristics, corporate board governance
Subjects:Business > Finance
Business > Management
Social Sciences > Sociology
DCU Faculties and Centres:DCU Faculties and Schools > DCU Business School
Publisher:Wiley-Blackwell Publishing Ltd.
Official URL:https://onlinelibrary-wiley-com.dcu.idm.oclc.org/j...
Copyright Information:Authors
Funders:National Natural Science Foundation of China (Grant No. 71991473 and No. 71671076)
ID Code:30531
Deposited On:12 Nov 2024 12:24 by Sandeep Keshava Rao . Last Modified 12 Nov 2024 12:24
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