Tracing the path to sustainable governance: CSR committees as mediators of board impact on ESG performance in the MENA region

Purpose This study aims to explore the mediating role of corporate social responsibility (CSR) committees in the relationship between board characteristics and environmental, social and governance (ESG) performance, specifically within the Middle East and North Africa (MENA) region. Design/methodology/approach Based on a panel of 178 firms spanning 2015–2022, the analysis uses Baron and Kenny’s (1986) mediation approach, supplemented by structural equation modeling (SEM) path analysis for robustness. Findings The findings demonstrate that CSR committees play a significant mediating role in the impact of board size, expertise and gender diversity on ESG performance. Furthermore, the study confirms the direct, positive influence of both board characteristics and the presence of CSR committees on ESG performance, underscoring their strategic importance in fostering sustainability in this regional context. Practical implications The findings highlight the strategic importance of diversifying and enhancing board skills to improve ESG performance. Companies are encouraged to recalibrate their governance frameworks to leverage the mediating influence of CSR committees and promote sustainable business practices. Social implications By demonstrating the positive effect of CSR committees on ESG performance, this study aligns with global trends in responsible business conduct and highlights the importance of corporate governance in addressing environmental and social challenges. This alignment is critical for achieving sustainable development goals and reinforcing stakeholder trust in the region. Originality/value This research provides novel empirical insights into the mediating effect of CSR committees within the MENA region, offering a unique contribution to the discourse on corporate governance and sustainability. By highlighting region-specific governance dynamics that shape ESG outcomes, it deepens the understanding of effective governance practices.

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Publication Details

Journal
Corporate Governance
Published
2024-11-08
DOI
https://doi.org/10.1108/cg-03-2024-0147
Citations
37
Primary Topic
Corporate Social Responsibility Reporting
Type
article
Field-Weighted Citation Impact
20.52
Controls
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article

Tracing the path to sustainable governance: CSR committees as mediators of board impact on ESG performance in the MENA region

Waleed M. Alahdal, Inès Kateb
37 citations
Corporate Governance
Corporate Social Responsibility Reporting
20.52
article

Tracing the path to sustainable governance: CSR committees as mediators of board impact on ESG performance in the MENA region

Waleed M. Alahdal, Inès Kateb
article en
37 citations

Abstract

Purpose This study aims to explore the mediating role of corporate social responsibility (CSR) committees in the relationship between board characteristics and environmental, social and governance (ESG) performance, specifically within the Middle East and North Africa (MENA) region. Design/methodology/approach Based on a panel of 178 firms spanning 2015–2022, the analysis uses Baron and Kenny’s (1986) mediation approach, supplemented by structural equation modeling (SEM) path analysis for robustness. Findings The findings demonstrate that CSR committees play a significant mediating role in the impact of board size, expertise and gender diversity on ESG performance. Furthermore, the study confirms the direct, positive influence of both board characteristics and the presence of CSR committees on ESG performance, underscoring their strategic importance in fostering sustainability in this regional context. Practical implications The findings highlight the strategic importance of diversifying and enhancing board skills to improve ESG performance. Companies are encouraged to recalibrate their governance frameworks to leverage the mediating influence of CSR committees and promote sustainable business practices. Social implications By demonstrating the positive effect of CSR committees on ESG performance, this study aligns with global trends in responsible business conduct and highlights the importance of corporate governance in addressing environmental and social challenges. This alignment is critical for achieving sustainable development goals and reinforcing stakeholder trust in the region. Originality/value This research provides novel empirical insights into the mediating effect of CSR committees within the MENA region, offering a unique contribution to the discourse on corporate governance and sustainability. By highlighting region-specific governance dynamics that shape ESG outcomes, it deepens the understanding of effective governance practices.

Corporate GovernanceVol. 25(6)
Universiti Malaysia Terengganu (MY), Manouba University (TN)
Openalex Percentile: Top 1%
Corporate Social Responsibility Reporting
20.52
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