From Centrality to Sustainability: How Connected Boards Shape Waste Management Outcomes

The escalating climate crisis has elevated waste management from an operational concern to a critical issue of corporate governance. However, the role of board connectedness in shaping firms' waste practices remains largely unexplored. Drawing on resource dependency and social capital theories, this study examines how board network centrality influences waste management practices. Employing pooled OLS on 4948 firm‐year observations from US‐listed firms during 2004–2023, we find that higher board connectedness leads to a significant reduction in waste generation. Economically, a one standard deviation increase in DEGREE centrality is associated with a 3.4% decrease in total waste generation. Our results remain largely consistent after testing for a battery of endogeneity checks including system GMM, two‐stage least square (2SLS), entropy balancing, and a difference‐in‐differences (DiD) regression. Additionally, we find that well‐connected boards significantly increase firms' waste recycling rates, highlighting their role in advancing circular economy practices. Mechanism analysis reveals that this effect is amplified in firms with environmental training programs, dedicated environmental management teams, and external sustainability partnerships. Furthermore, we document that improved waste management, driven by board networks, translates into enhanced firm performance, supporting the business case for sustainability. For policymakers and practitioners, the findings suggest that board connectivity serves as a vital governance signal for environmental accountability, enabling firms to navigate regulatory pressures while delivering both ecological and economic value.