TY - JOUR
T1 - Examining the relationship between CEO power and modern slavery disclosures
T2 - The moderating role of board gender diversity in UK companies
AU - Allam, Amir
AU - Moussa, Tantawy
AU - Elmarzouky, Mahmoud
N1 - Funding: The authors gratefully acknowledge the financial support provided by The British Academy, which funded this project through the Leverhulme Small Research Grant SRG22\220712.
PY - 2024/8/11
Y1 - 2024/8/11
N2 - Drawing on agency and gender socialisation theories, this study examines the effect of Chief Executive Officer (CEO) power on corporate modern slavery disclosures (MSD) and investigates whether board gender diversity might influence this relationship. Based on a sample comprising the Financial Times Stock Exchange (FTSE) 100 companies from 2016 to 2020, the findings indicate that, although there has been progress in corporate transparency concerning modern slavery, a significant gap persists in the reporting on the measurement and monitoring of the effectiveness of their policies. This may stem from powerful CEOs' desires to maintain a positive corporate image, leading to minimal disclosure of potentially damaging information. The fixed effects panel regression analysis reveals a negative relationship between CEO power (CEOP) and the extent of modern slavery disclosures (MSD), with a significant moderating effect observed when female board representation is substantial. This evidence suggests that female board members may challenge groupthink and introduce diverse perspectives that can alter the board's dynamics, potentially mitigating the negative impact of CEOP on issues like modern slavery disclosure by encouraging more ethical and collective decision-making. This research underscores the need for greater transparency and accountability in addressing modern slavery and promoting more responsible business practices.
AB - Drawing on agency and gender socialisation theories, this study examines the effect of Chief Executive Officer (CEO) power on corporate modern slavery disclosures (MSD) and investigates whether board gender diversity might influence this relationship. Based on a sample comprising the Financial Times Stock Exchange (FTSE) 100 companies from 2016 to 2020, the findings indicate that, although there has been progress in corporate transparency concerning modern slavery, a significant gap persists in the reporting on the measurement and monitoring of the effectiveness of their policies. This may stem from powerful CEOs' desires to maintain a positive corporate image, leading to minimal disclosure of potentially damaging information. The fixed effects panel regression analysis reveals a negative relationship between CEO power (CEOP) and the extent of modern slavery disclosures (MSD), with a significant moderating effect observed when female board representation is substantial. This evidence suggests that female board members may challenge groupthink and introduce diverse perspectives that can alter the board's dynamics, potentially mitigating the negative impact of CEOP on issues like modern slavery disclosure by encouraging more ethical and collective decision-making. This research underscores the need for greater transparency and accountability in addressing modern slavery and promoting more responsible business practices.
KW - Board gender diversity
KW - CEO power
KW - Modern slavery disclosures
KW - Sustainable development goals
KW - UK
U2 - 10.1002/bse.3910
DO - 10.1002/bse.3910
M3 - Article
AN - SCOPUS:85200973965
SN - 0964-4733
VL - Early View
JO - Business Strategy and the Environment
JF - Business Strategy and the Environment
ER -