Examining the relationship between CEO power and modern slavery disclosures:   The moderating role of board gender diversity in UK companies

Amir Allam; Tantawy Moussa; Mahmoud Elmarzouky

doi:10.1002/bse.3910

Examining the relationship between CEO power and modern slavery disclosures: The moderating role of board gender diversity in UK companies

Amir Allam, Tantawy Moussa^*, Mahmoud Elmarzouky

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

9 Citations (SciVal)

19 Downloads (Pure)

Abstract

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.

Original language	English
Pages (from-to)	8067-8085
Number of pages	19
Journal	Business Strategy and the Environment
Volume	33
Issue number	8
Early online date	11 Aug 2024
DOIs	https://doi.org/10.1002/bse.3910
Publication status	Published - Dec 2024

Bibliographical note

Copyright © 2024 The Author(s). Business Strategy and the Environment published by ERP Environment and John Wiley & Sons Ltd. This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited.

Funding

We would like to express our deep appreciation to The British Academy for their financial support in undertaking this project through the Leverhulme Small Research Grant SRG22\220712.

Funders	Funder number
British Academy/Leverhulme	SRG22\220712

Keywords

Modern slavery disclosures
CEO power
board gender diversity
sustainable development goals
UK

Access to Document

10.1002/bse.3910Licence: CC BY 4.0

Bus Strat Env - 2024 - Allam - Examining the relationship between CEO power and modern slavery disclosures The moderating
Copyright © 2024 The Author(s). Business Strategy and the Environment published by ERP Environment and John Wiley & Sons Ltd. This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited.
Final published version, 1.73 MBLicence: CC BY 4.0

Cite this

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abstract = "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.",

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