Busy outside directors and ESG performance: Evidence from workplace safety

초록

This research explores the impact of multiple directorships, commonly known as "busy" boards, on workplace safety by utilizing 8019 U.S. firm-year observations from 2011 to 2023 alongside establishment-level OSHA data. The findings reveal that busy outside directors are negatively associated with workplace safety, whereas busy inside directors are not. These effects persist after controlling for fixed effects related to firm, year, and industry, as well as lagged designs and plausibly exogenous workload shocks. Additionally, the results indicate that communities with stronger union presence, civic engagement, and long-term orientation can alleviate the monitoring challenges faced by busy outside directors. Moreover, the analysis highlights that firms with busy outside directors frequently fail to sufficiently disclose their sustainability practices. This observation aligns with stakeholder and social movement theories, which propose that social initiatives can motivate firms to adopt more responsible behaviors, thereby fostering a workplace culture focused on long-term sustainability.

키워드