Oussama MOUSTABCHIR

Jury

Abstract

This dissertation examines the role and influence of employee share ownership on corporate social responsibility (CSR) in France. The objective is to study the effects of employee participation in the company’s capital and governance bodies on CSR performance. To this end, we draw on the field of corporate governance theory. Our approach is based on empirical articles and a mixed-methods research design, utilizing both quantitative and qualitative methods. The quantitative phase of the research analyzes the direct links between employee share ownership, its mandatory representation on the board of directors, and the CSR performance of French publicly traded companies. In a first article, we examine the consequences of employee equity ownership on CSR performance. The results show that employee share ownership positively influences overall CSR performance, particularly social and governance performance. The results also reveal that employee ownership only becomes a true driver of environmental performance when employees hold a significant stake in their company’s capital. In a second article, we study the impact of employee shareholder representation on the board of directors on CSR performance. The results highlight the negative effect of directors representing employee-shareholders on CSR performance. Our findings also reveal that this negative effect is confirmed when the CEO serves as chair of the board of directors. Furthermore, we show that this negative effect is amplified in cases of dispersed ownership as well as under family control, but becomes negligible under institutional and state control. The qualitative phase of the research examines the role that employee share ownership plays in CSR. We propose an understanding of this role by assessing the degree of interest employee-shareholders have in CSR and by evaluating their scope for action and how they exercise it within governance bodies. The analysis is based on a series of semi-structured interviews conducted with employee-shareholders who are members of the governance bodies of large French companies. The results highlight that these employee-shareholders take a keen interest in CSR and have the necessary incentives and various levers of action that enable them to play a key role in promoting their companies’ CSR commitment. However, the results also reveal that employee-shareholders face certain obstacles or constraints that limit their room for maneuver and hinder their positive role in CSR. Thus, this doctoral research offers recommendations that can assist companies in their decisions regarding shareholder structure and can inform regulators about CSR-promoting practices for companies—with the concepts of shared governance, responsible capitalism, and corporate reform at the heart of current debates in France.