This study analyzes how the board’s characteristics could be associated with globally corporate social responsibility CSR and specific areas of CSR. It is drawn on all listed firms, in 2016, on the SBF120 between 2003 and 2016. Our results provide strong evidence that diversity in boards and diversity of boards globally are positively associated with corporate social performance. However, they influence differently specific dimensions of CSR performance. First, we show that large boards are positively associated with all areas of CSR performance, while specific and overall CSR scores are negatively associated with CEO-chair structures. Second, board gender diversity is positively associated with human rights and corporate governance dimensions. Third, age diversity is positively associated with corporate governance, human resources, human rights, and environmental activities. Also, our results provide evidence that outside directors care about CSR performance. Specifically, the presence of foreign directors is positively associated with environmental performance and community involvement, whereas CSR-Governance dimension is positively associated with the presence of independent directors. Regarding the director’s educational level, post-graduated directors are positively and significantly associated with overall CSR score and all CSR sub-scores, except the corporate governance one. When directors have multiple directorships, they are more concerned about human resources, environmental performance, and business ethics. Finally, our findings are robust only in non-family firms. In fact, family boards are less diverse than non-family ones; specifically, they have a lower number of independent, foreign, and high-educated directors.

Board Diversity and Corporate Social Responsibility: Empirical Evidence from France

This paper provides, to the best of the authors' knowledge, the first meta‐analysis of evidence about the influence of the corporate governance on environmental, social, and governance (ESG) disclosure, in a setting where the disclosure of information is voluntary but not discretionary. We apply meta‐analysis to a sample of 24 empirical studies to clarify the relationship of board size, board independence, women on board, number of board meeting, CEO duality, and company ownership with ESG disclosure. Our results show that board independence, board size, and women directorship visibly enhance ESG voluntary disclosure; board ownership and CEO duality do not improve the level of ESG disclosure; and some hesitations remain in respect of the number of board meetings and institutional and family ownership. The paper contributes to the ongoing debate on the corporate governance mechanisms that lead to more ESG disclosure and highlight the need of new approach on these issues.

Corporate governance and environmental social governance disclosure: A meta‐analytical review

A growing body of research suggests that the composition of a firm’s board of directors can influence its environmental, social and governance (ESG) performance. In the banking industry, ESG performance has not yet been explored to discover how a critical mass of women on the board of directors affects performance. This paper seeks to fill this gap in the literature by testing the impact of a critical mass of female directors on ESG performance. Other board characteristics are accounted for: independence, size, frequency of meetings and Corporate Social Responsibility (CSR) committee. We use fixed effects panel regression models on a sample of 108 listed banks in Europe and the United States for the period 2011–2016. Our main empirical evidence shows that the relationship between women on the board of directors and a bank’s ESG performance is an inverted U-shape. Therefore, the critical mass theory for banks is not supported, confirming that only gender-balanced boards positively impact a bank’s performance for sustainability. There is a positive link between ESG performance and board size or the presence of a CSR committee, while it is negative with the share of independent directors. With this work, we stress the key role of corporate governance principles in banks’ ESG performance, with relevant implications for both banks and supervisory authorities.

https://www.mdpi.com/2071-1050/10/12/4699/pdf

Composition and Activity of the Board of Directors: Impact on ESG Performance in the Banking System

By studying female directors and their typology, this paper contributes to the empirical evidence relating to board gender diversity and the disclosure of corporate social responsibility (CSR) information. An ordered random effect probit model was applied to a panel of Spanish non-financial and non-insurance listed firms over the 2009–2013 period. The analyses revealed that a higher percentage of women in boardrooms and in groups of outside and independent directors imply better CSR disclosure. These results hold for corporations with a critical mass of three women on the board and among outside directors.

Do Board Gender Diversity and Director Typology Impact CSR Reporting

Purpose - This study is guided by the upper echelon theory and argues that the role of females on boards of directors may differ between cultures. In a culture where the community has a significant humane orientation, female directors may pay much more attention to the social issues of corporate sustainability rather than environmental issues. Therefore, this study differentiates between the social and environmental performances of companies to examine whether the presence of females on the boards of directors of Malaysian firms could affect social and environmental performances differently.
Design/methodology/approach - This study uses a sample of firms listed in Bursa Malaysia and develops two disclosure indices to measure social and environmental performances. Three proxies of female directors are used in the empirical models. The ordinary Least Square is used to test the hypothesis.
Findings - The empirical results suggest a positive association between social performance and
the presence of female directors on the board of directors of Malaysian firms. However, no association was found between environmental performance and the presence of female directors on those boards. These results confirm the prediction of this study that the female directors of
Malaysian firms pay more attention to social issues than to environmental ones.
Originality/value - This is the first study to examine the effects of the presence of female directors on Malaysian firms’ boards of directors on social and environmental performance. It also contributes to the upper echelon theory by illuminating the importance of gender diversity
in influencing the social and environmental behaviors of corporate leaders. The results provide the important implication that the association between a firm’s social and environmental performance and gender diversity depends on the culture within which the company operates.

/pdf/impact-of-gender-diversity-on-social-and-environmental-52opid132o.pdf

Impact of gender diversity on social and environmental performance: evidence from Malaysia

Purpose




The purpose of this paper is to examine the effect of board composition on corporate social responsibility (CSR) for selected Malaysian companies in Bursa Malaysia.




Design/methodology/approach




The paper analyses board composition and CSR of Malaysian (family and non-family) firms using linear regression analysis.




Findings




The empirical findings indicate that non-executive directors (NEDs) and independent non-executive directors (INEDs) designate a negative relationship, while women on board indicate a positive relationship. The only variable that positively affects the level of CSR initiatives is the presence of women directors. As for family and non-family business, the main findings are: a positive relationship between NEDs and CSR initiatives in non-family business and a negative relationship between INEDs and CSR for family-controlled business.




Research limitations/implications




This paper is limited only to selected companies on Bursa Malaysia over a period of two years. The paper suggests that board composition in an emerging market is relatively ineffective in improving CSR initiatives, with the exception of women on board. This is more prevalent in family business, as they do not seem to contribute toward humanizing or cultivating CSR in their companies.




Practical implications




This paper can be used as a reference by regulatory bodies to further investigate on the means as to how board composition can further contribute toward CSR initiatives, as these board members have inherent authorities and decision-making power. Composition and role of women directors in board needs to be further deliberated.




Originality/value




This paper contributes to the existing literature in terms of the roles of board composition on CSR initiatives. It further highlights the difference in the aforementioned relationship between family and non-family business.

Tan Je-Yen

Papers

Board composition and corporate social responsibility in an emerging market