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Leading corporate sustainability: The role of top management team composition for triple bottom line performance
Henry,Leona Buyl,T. Jansen,R.J.G.
Henry,Leona
Buyl,T.
Jansen,R.J.G.
Abstract
Sustainable development at the corporate level requires balancing social, environmental, and financial performance goals. Achieving such “triple bottom line” (TBL) performance is a very challenging task. In this study, we explore the role the organization's top management team (TMT) plays in leading their organization towards corporate sustainability. We focus on how two distinct aspects of the TMT's structural composition—the presence of a “chief sustainability officer” (CSO) and the TMT's functional diversity—affect the organization's ability to reach high levels of TBL performance. We follow the presence of 22 global energy companies in Corporate Knight's “Global 100” sustainability index for a period of 11 years and find that, surprisingly, the presence of a CSO does not boost TBL performance. However, we do find a positive effect for TMT functional diversity, suggesting that more diverse TMTs are better able to lead their organization to higher levels of TBL performance.
Description
Date
2019
Journal Title
Journal ISSN
Volume Title
Publisher
Research Projects
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Journal Issue
Keywords
EVOLUTION, FINANCIAL PERFORMANCE, FIRM PERFORMANCE, FUNCTIONAL DIVERSITY, HETEROGENEITY, INNOVATION, LEADERSHIP, MEASUREMENT SYSTEMS, STRATEGIC DECISION-MAKING, TMT diversity, TRADE-OFFS, chief sustainability officer, corporate sustainability, sustainable development, top management team, triple bottom line performance, SDG 8 - Decent Work and Economic Growth, SDG 9 - Industry, Innovation, and Infrastructure, SDG 12 - Responsible Consumption and Production
Citation
Henry, L, Buyl, T & Jansen, R J G 2019, 'Leading corporate sustainability : The role of top management team composition for triple bottom line performance', Business Strategy and the Environment, vol. 28, no. 1, pp. 173-184. https://doi.org/10.1002/bse.2247
License
info:eu-repo/semantics/openAccess