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

Allam, A., Moussa, T. and Elmarzouky, M. 2024. Examining the relationship between CEO power and modern slavery disclosures: The moderating role of board gender diversity in UK companies. Business Strategy and The Environment. bse.3910. https://doi.org/10.1002/bse.3910

TitleExamining the relationship between CEO power and modern slavery disclosures: The moderating role of board gender diversity in UK companies
TypeJournal article
AuthorsAllam, A., Moussa, T. and Elmarzouky, M.
Abstract

Drawing on the agency and gender socialisation theories, this study examines the effect of CEO power on corporate modern slavery disclosures (MSD), and whether board gender diversity might influence this relationship. Based on a sample comprising the 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 and the extent of 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 CEO power 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.

KeywordsModern slavery disclosures
sustainable development goals
CEO Power
board gender diversity
UK
Article numberbse.3910
JournalBusiness Strategy and The Environment
ISSN0964-4733
Year2024
PublisherWiley
Accepted author manuscript
License
CC BY 4.0
File Access Level
Open (open metadata and files)
Publisher's version
File Access Level
Open (open metadata and files)
Digital Object Identifier (DOI)https://doi.org/10.1002/bse.3910
Web address (URL)https://onlinelibrary.wiley.com/doi/epdf/10.1002/bse.3910
Publication dates
Published11 Aug 2024
ProjectAn examination of UK firms’ modern slavery disclosures: A gender socialisation theory perspective
FunderBA (British Academy)

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