Citation

Mensah, Leviticus and Arhinful, Richard and Obeng, Hayford Asare and Gyamfi, Bright Akwasi (2025) Corporate Social Responsibility (CSR) Governance Systems in Shaping Firms' Environmental Innovation on the London Stock Exchange. Corporate Social Responsibility and Environmental Management. ISSN 1535-3958

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Abstract

Corporate social responsibility (CSR) governance systems played a crucial role in ensuring corporate accountability and facilitating decision-making that fostered trust and transparency among stakeholders. By embedding sustainability into strategic processes, these systems promoted environmental innovation and reinforced long-term ecological responsibility and value creation. However, significant knowledge gaps remained regarding the extent to which CSR governance systems influenced environmental innovation. This study addressed these gaps by drawing on the natural-resource-based view (NRBV) theory and analyzing data from 267 nonfinancial firms listed on the London Stock Exchange between 2007 and 2024, sourced from the Bloomberg Database. The empirical analysis employed robust econometric techniques, including feasible generalized least squares (FGLS), Driscoll–Kraay standard errors with fixed effects, and a two-step generalized method of moments (GMM) approach. Findings revealed that CSR governance mechanisms—specifically board gender diversity, the size of the CSR committee, the presence of nonexecutive directors on CSR committees, and the frequency of CSR committee meetings—exerted a significant and positive impact on environmental innovation. The study recommended that corporations institutionalize CSR governance frameworks, particularly through dedicated committees and specialized board structures, to embed sustainability into corporate strategy. Doing so enhanced competitiveness, strengthened reputation, and generated long-term stakeholder value

Item Type:	Article
Uncontrolled Keywords:	Corporate governance
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD2350.8-2356 Large industry. Factory system. Big business > HD2709-2930.7 Corporations. Including international business enterprises, diversification, industrial concentration, public utilities
Divisions:	Faculty of Management (FOM)
Depositing User:	Ms Rosnani Abd Wahab
Date Deposited:	06 Jan 2026 07:42
Last Modified:	08 Jun 2026 04:52
URII:	http://shdl.mmu.edu.my/id/eprint/15135

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