Sustainability‐Focused or Unfocused CSR Committees: Which Ones Are Beneficial for Corporate Environmental Performance?

ABSTRACT

This study investigates the relationship between corporate social responsibility (CSR) committees' mandates, the characteristics of their chairs, and corporate environmental performance. Employing the whole sample of Italian industrial firms listed on Euronext Milan, we find that only sustainability‐focused CSR committees are positively associated with corporate environmental performance. Moreover, specific characteristics of committee chairs in sustainability‐focused CSR committees are significantly linked to corporate environmental performance. Chairs with executive roles and longer tenure are positively associated with corporate environmental performance. These results highlight the importance of committee structure, clarity of mandates, and the characteristics of committee chairs in shaping corporate environmental strategies, as well as offer practical and theoretical implications.