The power of one to make a difference: How informal and formal CEO power affect environmental sustainability.
Journal
Journal of Business Ethics
ISSN
0167-4544
Type
journal article
Date Issued
2017
Author(s)
Abstract (De)
We theoretically discuss and empirically show how CEO power based on environmental expertise and formal influence over executives and directors, in the absence and presence of shareholder activism, spurs firms toward greener strategies. Our results support the idea that CEOs with informal power, grounded in expertise, reduce corporate environmental impact and this relationship is amplified when the CEO also enjoys formal power over the board of directors. Additionally, we found that any source of CEO power, whether informal or formal, is a good catalyst for transforming shareholder activism into corporate greening. However, in the absence of such activism, only CEOs’ informal environmental expert power acts as a determinant of firm environmental performance.
Language
English
Refereed
Yes
Publisher
Reidel
Volume
145
Number
2
Start page
293
End page
308
Subject(s)
Division(s)
Eprints ID
257451