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Birds of a Feather Flock Together

The Impact of Top Management Team Faultlines on Environmental, Social, and Governance Performance

Bibliographic Data

ID21259335
AuthorsHai Huang (0000-0001-8544-8792, Harbin Institute of Technology), Shengbin Hao (0000-0003-4392-752X, Harbin Institute of Technology, corresponding author)
Year2025
Volume34
Issue4
Pages2321-2338
Publication date2025-10-01
Open AccessYes
TypeARTICLE
VenueBusiness Ethics, the Environment & Responsibility (JOURNAL)
Journal identifiersISSN: 2694-6416 • E-ISSN: 2694-6424
PublisherWiley (PUBLISHER • GB)
DOI10.1111/beer.12767
OpenAlexW4404895287
LanguageEN
Citations received2
References cited83

While theory and research indicate that top management team (TMT) attributes play a crucial role in shaping responsible practices, how and when TMT faultlines affect environmental, social, and governance (ESG) performance remains an open question. This study aims to fill this research gap by integrating social categorization theory with the faultline literature. Using a sample of Chinese listed firms over a 12‐year period, our findings indicate that TMT faultlines can significantly inhibit ESG performance, and managerial myopia is the primary channel through which the negative effect operates. In addition, our study reveals that negative attainment discrepancy significantly amplifies the inhibitory effect of TMT faultlines on ESG performance. Intriguingly, this inhibitory effect is mitigated in firms with strong Confucian culture. Our study also reveals variations in the impact of TMT faultlines on ESG performance concerning the type of faultlines and the level of industry competition. These findings not only contribute to the literature on TMT faultlines and upper echelons but also provide valuable guidance for managers in adeptly navigating the dynamics of TMT composition

Biology · Business · Corporate governance · Environmental planning · Environmental resource management · Feather · Fishery · Flock · Geography · Environmental Science · Gender Diversity and Inequality · Job Satisfaction and Organizational Behavior · Management and Organizational Studies · Ecology

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Citations per year2
Citation span2025 - 2026 (2)
Highly citedNo

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