How do female CEOs affect corporate environmental policies?

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In a Corporate Social Responsibility and Environmental Management analysis of 351 Chinese listed firms in heavily polluting industries from 2006–2019, investigators found that companies with female CEOs tended to have policies supporting environmental sustainability—for example, reducing waste, minimizing consumption, and protecting and conserving wildlife and natural habitats.

The researchers also examined the moderating effect of the proportion of female directors on the board. They found that the presence of such "in-group members" strengthens the relationship between female CEOs and corporate environmental policies.

"There is an old saying in China that 'Women hold up half the sky.' This paper truly supports this viewpoint by highlighting the power of women executives on corporate environmental policies," said corresponding author Ying Zhang, Ph.D., of Northwestern Polytechnical University, in China. "This paper can assist policymakers and in drafting the relevant legislation for promoting women to corporate leadership positions, so as to provide social and environmental benefits for stakeholders and society."

More information: How do female CEOs affect corporate environmental policies?, Corporate Social Responsibility and Environmental Management (2022). DOI: 10.1002/csr.2366

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Citation: How do female CEOs affect corporate environmental policies? (2022, October 5) retrieved 1 December 2022 from https://phys.org/news/2022-10-female-ceos-affect-corporate-environmental.html
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