Abstract
Purpose
This study aims to explore whether firms with corporate social responsibility (CSR) subcommittees exhibit higher discretionary carbon emission reductions compared to non-CSR-governed firms during the COVID-19 pandemic to test governance resilience under financial distress.
Design/methodology/approach
Drawing on an international sample of public firms from 45 countries (2018–2021), the study examines whether there is variation in the relationship between the firm’s CSR focus and carbon emissions reduction scores, and how this is moderated by the COVID-19 pandemic.
Findings
While all firms exhibit increased carbon reduction during COVID-19, evidencing a nondiscretionary change in emissions associated with the pandemic, CSR subcommittee firms achieve higher carbon emissions reduction scores. However, firms experiencing financial distress during the pandemic show a weaker discretionary reduction effect, although they still outperform firms without CSR subcommittees. These findings highlight the stabilizing influence of governance structures in sustainability efforts during periods of exogenous shock.
Research limitations/implications
The study focuses on publicly listed firms and relies on CER scores as proxies. Future research could examine private firms, sector-specific practices, and longitudinal effects beyond the COVID-19 period.
Practical implications
Firms with CSR subcommittees demonstrate higher carbon reduction even under crisis conditions. Embedding sustainability at the governance level can strengthen environmental strategy, investor confidence, and long-term risk management.
Social implications
Stronger CSR governance enhances corporate accountability in environmental crises. Encouraging formal oversight structures may foster responsible business conduct, improve stakeholder trust and align firm practices with global climate goals.
Originality/value
This study contributes to the literature by distinguishing between discretionary and nondiscretionary carbon reduction actions during a global crisis, testing the effect of financial distress, and considering the efficacy of emission reduction scores in a global and multi-industry context. The paper offers insights for policymakers, corporate leaders, and sustainability advocates who seek to balance organizational strength with environmental responsibility.
This study aims to explore whether firms with corporate social responsibility (CSR) subcommittees exhibit higher discretionary carbon emission reductions compared to non-CSR-governed firms during the COVID-19 pandemic to test governance resilience under financial distress.
Design/methodology/approach
Drawing on an international sample of public firms from 45 countries (2018–2021), the study examines whether there is variation in the relationship between the firm’s CSR focus and carbon emissions reduction scores, and how this is moderated by the COVID-19 pandemic.
Findings
While all firms exhibit increased carbon reduction during COVID-19, evidencing a nondiscretionary change in emissions associated with the pandemic, CSR subcommittee firms achieve higher carbon emissions reduction scores. However, firms experiencing financial distress during the pandemic show a weaker discretionary reduction effect, although they still outperform firms without CSR subcommittees. These findings highlight the stabilizing influence of governance structures in sustainability efforts during periods of exogenous shock.
Research limitations/implications
The study focuses on publicly listed firms and relies on CER scores as proxies. Future research could examine private firms, sector-specific practices, and longitudinal effects beyond the COVID-19 period.
Practical implications
Firms with CSR subcommittees demonstrate higher carbon reduction even under crisis conditions. Embedding sustainability at the governance level can strengthen environmental strategy, investor confidence, and long-term risk management.
Social implications
Stronger CSR governance enhances corporate accountability in environmental crises. Encouraging formal oversight structures may foster responsible business conduct, improve stakeholder trust and align firm practices with global climate goals.
Originality/value
This study contributes to the literature by distinguishing between discretionary and nondiscretionary carbon reduction actions during a global crisis, testing the effect of financial distress, and considering the efficacy of emission reduction scores in a global and multi-industry context. The paper offers insights for policymakers, corporate leaders, and sustainability advocates who seek to balance organizational strength with environmental responsibility.
| Original language | English |
|---|---|
| Pages (from-to) | 1-28 |
| Number of pages | 28 |
| Journal | Journal of Accounting and Organizational Change |
| DOIs | |
| Publication status | E-pub ahead of print - 9 Jan 2026 |
