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Does CSR Governance Improve Social Sustainability and Reduce the Carbon Footprint: International Evidence from the Energy Sector

Author

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  • Asif Saeed

    (FAST School of Management, National University of Computer and Emerging Sciences, Lahore 54000, Pakistan)

  • Umara Noreen

    (College of Business Administration, Prince Sultan University, Riyadh 11586, Saudi Arabia)

  • Akbar Azam

    (FAST School of Management, National University of Computer and Emerging Sciences, Lahore 54000, Pakistan)

  • Muhammad Sohail Tahir

    (Department of Management Science, COMSATS University Islamabad, Vehari 45550, Pakistan)

Abstract

In today’s world, the energy sector is considered the backbone of any economy and plays a key role in carbon trading markets and mitigation actions. This study explores the impact of CSR governance on carbon footprints and the social performances of the energy sector. Using an international sample of 45 countries from 2002 to 2017, we find that the existence of a CSR committee improves the firm’s social responsibility and effectively mitigates the carbon footprint. Further, our results present that a large CSR committee with more experienced board members are effective to implement sustainable business practices. Furthermore, a CSR committee with experienced board members does not mitigate the environmental and social concerns, when energy firms have more powerful CEOs. Collectively, our evidence indicates that the existence of CSR governance is favorable to focus on social issues than environmental ones.

Suggested Citation

  • Asif Saeed & Umara Noreen & Akbar Azam & Muhammad Sohail Tahir, 2021. "Does CSR Governance Improve Social Sustainability and Reduce the Carbon Footprint: International Evidence from the Energy Sector," Sustainability, MDPI, vol. 13(7), pages 1-16, March.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:7:p:3596-:d:523040
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