The Moderating Role of the Legal Context Between ESG Controversies, Economic Performance and Board of Directors
Corporate Social Responsibility and Environmental Management
Published online on May 04, 2026
Abstract
["Corporate Social Responsibility and Environmental Management, Volume 33, Issue 3, Page 3208-3224, May 2026. ", "\nABSTRACT\nThis study investigates the relationship between corporate governance mechanisms and ESG controversies in 300 publicly listed firms across six countries—Italy, Spain, France, the United Kingdom, the United States, and Canada—representing both Civil and Common Law systems. Using panel data from 2021 to 2023, the analysis explores how economic performance mediates, and legal context moderates, the impact of governance mechanisms on ESG failures. Findings reveal that the presence of ESG committees on boards is significantly associated with a reduction in ESG controversies. In contrast, board independence, gender diversity, and CEO duality show no consistent statistical effect. These results suggest that effective ESG oversight depends not only on the adoption of individual governance mechanisms, but also on contextual enablers such as financial health and regulatory environment. The study contributes to emerging debates on corporate accountability, offering policy‐relevant insights and a foundation for future research on ESG risk containment.\n"]