Investigating the relationship between director’s profile, board interlocks and corporate social responsibility

Abstract

Purpose – The purpose of this paper is to discuss a research model that presents three metrics of corporate social performance (CSP): board interlocks, director’s profile and corporate social responsibility (CSR). Design/methodology/approach – Based on social network theories, the authors argue the possible relationships between the three variables. The authors conduct the study on 255 directorships in the boards of 20 listed companies in France, which participate in Carbon Disclosure Project (CDP) for 2010. Findings – The results show that director’s background and nationality diversity in the board are the most relevant attributes to discerning firms with high CSR scores. However, the relationship between board interlocks and CSR is not consistent. Some explanations are reported and discussed. Research limitations/implications – The research contributes to recognize the most influential variables in board composition for firms with high CSR scores, although it is based on a conceptual development and an explorative analysis. It could constitute the basis for future research which integrates modeling and multivariate analysis. Practical implications – Diversity in the board could be an effective tool to guide management for more CSR decisions. Social implications – The paper highlights the importance of diversifying the recruitment base when integrating new board members. This implies opening board networks to new profiles, in order to better meet stakeholders’ expectations regarding CSR. Originality/value – The paper contributes to board literature by highlighting the importance of combining individual attributes (director) with corporate ones (board of directors) to better assess the role of board of directors in the adoption of CSR’ practices.

Dampak Karakteristik Dewan Direksi Terhadap Pengungkapan Corporate Social Responsibility Pada Perusahaan Pertambangan Di Indonesia

“…Secara lebih spesifik kajian mengenai karakteristik dewan direksi menjadi penting. Karakteristik dewan direksi tersebut mencakup diversitas dewan (Muttakin, Khan, dan Subramaniam, 2015) seperti keberadaan perempuan dalam dewan direksi (Fuente et al, 2017;Huang, 2013;Jain dan Jamali, 2016), lama menjabat (Huang, 2013;Lewis, Walls, dan Dowell, 2014;Rao dan Tilt, 2016a), keberadaan direktur asing (Barka dan Dardour, 2015;GarciaSanchez, Cuadrado-Ballesteros, dan Sepulveda, 2014) dan ukuran dewan (Fuente et al, 2017;Jain dan Jamali, 2016).…”

“…Teori ini yang dikembangkan oleh Donaldson dan Peterson (1995) Muttakin et al, (2015) yang menunjukkan direktur asing berpengaruh positif terhadap CSR. Barka dan Dardour (2015) meneliti dampak keberagaman kewarganegaraan anggota dewan terhadap pelaksanaan CSR pada perusahaan Perancis yang terdaftar di Bursa Efek Paris dan tercantum di Carbon Disclosure Project. Hasilnya menunjukkan bahwa keberagaman kewarganegaraan anggota dewan berimbas positif terhadap CSR.…”

“…Direktur asing mempunyai diversitas pengalaman dan keahlian yang lebih beragam (Barka dan Dardour, 2015;Ibrahim dan Hanefah, 2016;Muttakin et al, 2015) sehingga meningkatkan pelaksanaan CSR. Jadi hipotesis pertama adalah sebagai berikut: H 1 : Direktur asing berpengaruh positif terhadap CSR Masa Jabatan dan Corporate Social Responsibility.…”

“…Akan tetapi penelitian yang dilakukan oleh Barka dan Dardour (2015), Giannarakis (2014) signifikan keberadaan direktur wanita terhadap adopsi dan pelaksanaan CSR. Mereka berpendapat keberadaan wanita di dewan direksi tidak memberikan dampak yang signifikan terhadap pelaporan CSR.…”

Establishment of Expression of Management Culture as a Formal Part of the Organizational Culture, Aiming to Implement Corporate Social Responsibility

“…Meanwhile, Cooke [9] considers enterprise's orientation towards the employees' welfare, which includes improving the quality of employees' working conditions and applying means of motivation, as one of the main important cultural aspects. There are found quite a lot of sources that analyse certain elements of formal organizational culture: strategies, processes [10], organizational structure [11][12][13][14], control [15,16], incentive [17].…”