Organising for Corporate Social Performance

E-ISSN： 2051-4700|2009|36|71-86

ISSN： 1470-5001

Source： The Journal of Corporate Citizenship, Vol.2009, Iss.36, 2009-12, pp. : 71-86

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Abstract

The purpose of this paper was to investigate board-level committees created to oversee corporate social performance issues. We tried to gain more insight into: (1) potential determinants of the decision to create these committees; (2) types of social issue they oversee; (3) rules and procedures of these committees; and (4) their responsibilities and level of involvement. To this end, the board structures of 288 leading US companies were first examined. Sixty-three companies with committees that focus explicitly on social issues were identified and the content of their charters were then analysed against best governance practices. Results revealed that larger companies operating in higher-risk sectors are increasingly establishing board-level committees to deal with social issues, particularly those associated with environmental and governmental relations matters. They also revealed that, although committees were disclosing information on several topics, in many cases the information provided was limited and generic. Furthermore, by analysing committee charters, we were able to develop a typology that highlights four possible models of committee involvement. This typology could prove useful for companies and their boards as they try to determine the role directors should play to better manage a broader range of stakeholders.