Socially responsible boards: the evidence from RESPECT index companies

Abstract

The growing global awareness of environmental damage and social problems is reshaping the corporate practices in terms of strategy, governance structure, motivation systems and adopted policies. As companies differ significantly in terms of response to these challenges, researchers attempt to trace and understand their decisions leading to engagement in socially responsible initiatives and environmentally friendly solutions. This paper focuses on the characteristics of companies included in the RESPECT index introduced on the Warsaw Stock Exchange which covers companies characterised with the high standards of sustainability and social responsibility. The goal of the paper is to trace the RESPECT companies’ board characteristics. The research results confirm the convergence of CSR and corporate governance as companies included in the RESPECT index reveal stronger independent directors presence on board and more frequent formation of specialised board committees.