The board of directors and CSR: How does ideological diversity on the board impact CSR?

Olthuis, Benjamin R.; Oever, Koen van den

doi:10.1016/j.jclepro.2019.119532

Cited by 36 publications

(24 citation statements)

References 69 publications

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“…Firms' involvement in CSR disclosure and sustained competitive advantages suggest that board characteristics, specifically board diversity, should have a relationship with CSR practices. Despite the increasing literature on corporate governance and CSR in developing nations (Al-Fadli et al, 2019;Ajaz et al, 2020;Hassan et al, 2020;Olthuis & Oever, 2020;Wellalage et al, 2018), the relationship between board diversity and the quality of CSR disclosure in the financial sector has been relatively under investigated. Therefore, we examined the influence of board diversity on CSR disclosure and predicted that the relationship may be patterned differently from in prior literature in different contexts and nations, due to their distinctive characteristics.…”

Section: Discussionmentioning

confidence: 99%

“…The sources of sustainable competitive advantages have received considerable attention (Barney, 1991;King, 2007). In the recent corporate governance literature, board diversity as a firm's internal resource has become a significant issue of debate for researchers, academia, and policymakers (Hassan et al, 2020;Katmon et al, 2019;Olthuis & Oever, 2020). The resource-based view (RBV) suggests that firms' competitive advantages and superior performance are closely related to their internal resources and capabilities (Barney 1991;Peteraf & Bergen, 2003).…”

Section: Literature Reviewmentioning

confidence: 99%

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Does Board Diversity Matter for the Quality of CSR Disclosure? Evidence from the Financial Sector of Pakistan

Khan

Afridi

2021

RBGN

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Purpose -This study aims to examine the influence of board diversity on the quality of CSR disclosure (QCSR) and propose that this relationship is patterned differently in different contexts and nations, due to their distinctive characteristics.Design/methodology/approach -The resource-based view (RBV) theory is used to evaluate the hypothesized relationship through an empirical investigation of 64 Pakistani financial firms, by applying a random-effects regression and the generalized method of moments (GMM).] Findings -The findings indicate that age, gender, educational level, and educational background diversities positively influence QCSR disclosure. However, nationality, ethnic, and tenure diversities have no significant relationship with QCSR disclosure. The results were further checked by a robust regression and sensitivity analysis.Originality/value -Using RBV theory, this paper provides an additional contribution concerning the role played by board diversity in a firm's strategic performance, particularly CSR disclosure. The article contributes to the literature by finding that there is no unanimous rule for board diversity supporting CSR, due to the unique characteristics of different jurisdictions and institutional contexts.

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Section: Discussionmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Does Board Diversity Matter for the Quality of CSR Disclosure? Evidence from the Financial Sector of Pakistan

Khan

Afridi

2021

RBGN

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“…To the best of our knowledge, three main studies have attempted to explain ideological diversity effects on CSR. First, Olthuis and Oever (2020) have treated the influence of ideological diversity, including both information/decision-making and social categorization as underlying processes, within boards of directors on CSR. They disserted that a high level of ideological diversity leads to a lower performance in CSR.…”

Section: 24mentioning

confidence: 99%

“…Nevertheless, Barako and Brown (2008) showed insignificant links in both one-tier and two-tier board settings. Finally, two curious papers by Olthuis and Oever (2020) and Turker and Ozmen (2018) have treated directors' values toward CSR on an ideological ground. Results of these studies diverge.…”

Section: One-tier Vs Two-tier Board Features' Implications On the Association Between Board Diversity And Corporate Social Responsibilitymentioning

confidence: 99%

Is the effect of board diversity on CSR diverse? New insights from one-tier vs two-tier corporate board models

Jouber

2020

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Purpose The purpose of this study is to investigate the impact of board diversity on corporate social responsibility (CSR). The aim is twofold; does board diversity has any effect on CSR, do structural and demographic differences between one-tier and two-tier board models may impact this effect? Design/methodology/approach This paper applies a panel generalized method of moments estimator to a sample of 2,544 non-financial listed firms from 42 countries over the period of 2013–2017. Findings The findings reveal that board diversity leads to effective CSR. By distinguishing between diversity among boards from diversity within boards, the results display the effects of the specific variables that make up the manner and latter’s constructs within unitary and two-tier board structures. Specifically, this paper reveals that tenure, ideology and educational level (gender and nationality) predominantly appear to drive a firm’s CSR within one (two)-tier boards settings. These results remain consistent when robustness tests are ruled. Practical implications The study provides managers, investors and policymakers with knowledge about how among and within board diversity attributes favor the decision-making process around CSR. The evidence is useful for companies in setting the criteria to identify directors who can support their strategic decisions. It benefits, moreover, academics in better understanding firms’ CSR determinants and practices under different corporate board models. Social implications Examining how different sets of board diversity affect firms’ CSR given divergences between one-tier and two-tier board structure is a useful and informative endeavor for all community actors. Originality/value Unlike prior studies that identify the limited scope of diversity, the study is the first to examine the effect of broader dimensions of board diversity on CSR under both one-tier and two-tier board settings. This paper provides a contribution to a greater understanding of the impacts underlying board models and different attributes of board diversity on CSR. This new understanding will help to improve predictions of different features of board diversity impacts on decision-making processes around organizational outcomes.

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“…For instance, SQ is implemented for the betterment of services rendered to individuals ( Denton, 1989 ; Farooq, 2018 ; Farooq et al., 2018a ; Furrer et al., 2000 ; Salam and Farooq, 2020 ). CSR refers to the organizational accomplishments undertaken for the benefit of society ( Farooq and Salam, 2020 , p. 2; Mohamed Adnan et al., 2018 ; Olthuis and van den Oever, 2020 ; Potdar et al., 2020 ; Xiao et al., 2019 ). Similar concept of individual, societal and environmental concern at the core of CPP, makes it much closer to SQ and CSR related environmental initiatives at company level ( Cong and Shi, 2019 ; Farooq and Salam, 2020 ; Ramos et al., 2018 ; Sousa-Zomer et al., 2018 ; Zhang et al., 2015 ).…”

Section: Hypotheses Developmentmentioning

confidence: 99%

Cleaner production practices at company level enhance the desire of employees to have a significant positive impact on society through work

Farooq

Salam

2021

Journal of Cleaner Production

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Implementation of cleaner production practices (CPP), service quality (SQ) and corporate social responsibility (CSR) is often studied at organizational level. A number of studies on trio have reported it’s significant impact on overall organizational performance and profitability across the globe. However, not much is studied about the individual level micro influence of these constructs on employee engagement (EE), organizational pride (OP), organizational identification (OI) and “desire to have a significant impact through work” (DSIW). Therefore, this study presents a comprehensive framework for assessing the impact of the implementation of CPP, SQ and CSR on EE, OP, OI and DSIW. Data collected from 320 non-managerial staff members employed at a garments manufacturing company in Pakistan was analyzed using partial least square (PLS) approach. Findings revealed that the implementation of CPP, SQ and CSR plays an important role in shaping EE, OP, OI and DSIW in the garments manufacturing industry. Further, it is found that the implementation of CPP has a non-significant impact on SQ. Additionally, results of the importance-performance map analysis (IPMA) have also confirmed that the implementation of CPP at company level has shown a highest importance and performance amongst all the latent constructs proposed as predictors of DSIW in the garments manufacturing industry. These findings are a step forward and unique contribution of this study in the domain of CPP, SQ, CSR, EE, OP, OI and DSIW.

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The board of directors and CSR: How does ideological diversity on the board impact CSR?

Cited by 36 publications

References 69 publications

Does Board Diversity Matter for the Quality of CSR Disclosure? Evidence from the Financial Sector of Pakistan

Does Board Diversity Matter for the Quality of CSR Disclosure? Evidence from the Financial Sector of Pakistan

Is the effect of board diversity on CSR diverse? New insights from one-tier vs two-tier corporate board models

Cleaner production practices at company level enhance the desire of employees to have a significant positive impact on society through work

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