Rani Hoitash is Gibbons Research Professor of Accountancy at Bentley University; Udi Hoitash is Associate Professor of Accounting and Gary Gregg Research Fellow at D’Amore-McKim School of Business, Northeastern University. This post is based on a recent article authored by Mr. Hoitash, Mr. Hoitash, and Jenna J. Burke, Bentley University, forthcoming in the Journal of Business Ethics.
In our article, The Heterogeneity of Board-Level Sustainability Committees and Corporate Social Performance, forthcoming in the Journal of Business Ethics, we explore the performance impact of board-level sustainability committees.
Despite the increased prevalence of these committees on corporate boards, some critique their presence as a mere symbolic action to appease disgruntled stakeholders—ranging from representatives of local communities to employees, the environment, consumers, and suppliers. Indeed, early findings from academic research have shown these committees to have little to no performance impact. This is puzzling when combined with the finding that companies continue to adopt (Eccles et al. 2014), improve, and dedicate resources to these committees.
