Corporate governance and ecological investments. The case of French industry

This study examines the links between corporate governance and ecological investment decisions, focusing on arrangements aimed at democratizing decision-making: integration of new actors in decision-making processes, the development of ecological competencies within the firm, and the introduction of sustainability criteria into its management. Our study is based on an original database of 1788 establishments, representative of French manufacturing industry establishments with more than 20 employees. We use a Heckman selection bias model to demonstrate that corporate governance arrangements associated with the initiation of ecological investments differ from those linked to their intensification. We contribute to the discussion on workplace democracy and its relation to the ecologizing of firms by exploring various combinations of corporate governance. Our study highlights the complex relationship between ecological investments and governance arrangements aimed at democratizing corporate decision-making. While the formal integration of employees and external stakeholders into decision-making processes does not positively correlate with ecological investment, the adoption of sustainable management tools appears to play a critical role in mitigating the tensions observed. This suggests that structural reforms in corporate governance must go beyond symbolic employee integration and focus on creating the conditions necessary for meaningful collaboration and alignment of ecological and labor interests.