Abstract
Do firms conceive of imperatives to improve their environmental performance as threats to their current activities or as opportunities to do things in better and more sustainable ways? What role does the age of firms’ boards play in how environmental issues are interpreted and responded to? In this study, we address these questions by drawing on theories of managerial cognition and issue interpretation. Specifically, we theorize the role of threat and opportunity framings on corporate environmental performance and examine the role of board age as a critical moderator. We find that significant environmental performance improvements of firms with older boards are more likely to arise when they perceive of material physical and regulatory climate risks. Improvements in the environmental performance of younger boards, in contrast, is more likely to be provoked by a recognition of significant opportunities associated with the climate crisis. Thus, we show that board age plays a critical role in how environmental risks and opportunities are responded to. Given the ageing of working populations in many societies, these findings are of potentially significant importance to the achievement of a transition to a low carbon economy.
Original language | English |
---|---|
Title of host publication | Academy of Management Proceedings |
Place of Publication | Briarcliff Manor, NY |
Publisher | Academy of Management |
Number of pages | 6 |
Volume | 2020 |
DOIs | |
Publication status | Published - 2020 |
Event | 80th Annual Meeting of the Academy of Management 2020: Understanding the Inclusive Organization, AoM 2020 - Virtual, Online Duration: 7 Aug 2020 → 11 Aug 2020 |
Conference
Conference | 80th Annual Meeting of the Academy of Management 2020: Understanding the Inclusive Organization, AoM 2020 |
---|---|
City | Virtual, Online |
Period | 7/08/20 → 11/08/20 |