Board of directors’ relationship to environmental sustainability: Differences between insiders and outsiders : A study of inside and outside board members’ cognition and reasoning when engaging in environmental sustainability issues

Abstract: The aim of this study is to investigate how inside and outside directors differ in their cognition and reasoning in regards to environmental sustainability issues. The theoretical background derives from a cognitive view and Stakeholder theory. The paper is further based on current research regarding insiders’ and outsiders’ relationship to environmental sustainability. In order to capture the cognition and reasoning of insiders and outsiders, a Think-aloud study was conducted, interviewing a total of 20 board members in the food industry. Results from this study showed that, when faced with environmental issues, outsiders are more likely to request, repeat, ponder as well as clarify the information given. Secondly, outsiders are more likely to consider a long-term perspective. Thirdly, outsiders are more likely to consider an environmental view. Lastly, both insiders and outsiders use analogical reasoning when contemplating around environmental issues. However, insiders are more likely to draw experience from their current position or company while outsiders are more likely to draw experience from outside their current position or company when solving environmental issues.