As sustainability reporting gains regulatory traction across the EU, this study explores whether the presence of a Corporate Social Responsibility (CSR) Committee on a company’s board influences both financial (accounting, market) and non-financial (ESG Combined) performance. Using a panel mediation framework, we investigate whether stakeholder engagement and sustainability reporting act as key channels through which CSR Committees shape performance outcomes. Drawing on 7,667 firm-year observations from 36 countries between 2010 and 2021, our results show that CSR Committees exert a positive direct effect on ESG performance but a negative direct effect on financial performance—effects that are reversed and amplified when mediated by stakeholder-oriented disclosure strategies. These findings are robust to endogeneity controls and suggest that CSR Committees serve as governance levers that foster transparency, engagement, and legitimacy. The study contributes pre-CSRD insights into how voluntary governance structures may anticipate the strategic demands of forthcoming EU sustainability reporting standards.

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CSR Committees,ESGC,Mediation,Corporate Governance,Sustainability Reporting,CSRD,Stakeholder Engagement