Affiliation with Other DJSI Companies and Sustainability Initiatives

In addition to attracting directors with a personal commitment to sustainable development, most of the boards showed the presence of board members from companies in other sectors of the DJSI. Corporations were relying on the resource dependency aspects of the director role (Zahra and Pearce, 1989) by selecting individuals who could link them to others with knowledge and experience in sustainable development. Each of the companies had directors who were either executives or directors at other companies who have demonstrated excellence in sustainability by virtue of their inclusion in one of the other market sectors in the DJSI (Table 8.9).

Seven of the eight companies in the sample population have at least one director who is an executive at another company that is also listed as a 2004 DJSI firm. All of the companies have directors who also serve on the boards of other DJSI companies. These directors may play a role in transferring knowledge and expertise regarding sustainable development between the various companies that director represents. The trend of cross-membership on boards or management teams of other DJSI companies may have a positive influence on other companies for whom those directors may be engaged.

The DJSI is not the sole measure of corporate commitment to sustainable development. The data were reviewed to determine whether any of the directors had an

TABLE 8.9. Number of Board Members Affiliated with Other DJSI Members

Number of Directors

Number of

Holding Executive

Directors on

Number of

Positions at Other DJSI

Boards of Other DJSI

Company

Directors

Companiesa

Companies1"

Air Products

13

3

1

BASF

30c

2

11

Bayer

24

4

8

DSM

12

4

5

Degussa

24

2

8

Dow

14

1

3

DuPont

13

3

5

Praxair

11

0

1

a,bConsiders September 2003 DJSI listing only. Also includes directors who have retired from the referenced companies.

cIncludes two members who moved from Executive Board to Supervisory Board in May 2003 replacing two others, all of whom had influence on board actions prior to the datum point for this study.

a,bConsiders September 2003 DJSI listing only. Also includes directors who have retired from the referenced companies.

cIncludes two members who moved from Executive Board to Supervisory Board in May 2003 replacing two others, all of whom had influence on board actions prior to the datum point for this study.

affiliation with a company committed to other sustainability initiatives. While there are many such initiatives, this group of chemical companies had multiple directors associated with companies involved with the UN Global Reporting Initiative, the UN Global Compact, or the World Business Council on Sustainable Development, as summarized in Table 8.10.

In all cases, the board of each company had at least one member from another company affiliated with a major sustainable development initiative.

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