Women and CSR budgeting and spending: Does ownership enhance their CSR role?

Abstract

We investigate the impact of women shareholders on corporate social responsibility (CSR) and how they interact with women directors to exert a greater influence on CSR activities. Little is known about how women's ownership can enhance their roles in CSR practices. Based on data from Omani‐listed firms during 2016–2020 and using CSR budgeting and spending as proxies for CSR activities, firms with women shareholders allocate more CSR budgeting and spend more money on CSR activities. However, we also find that women directors can only affect CSR budgeting and spending if their representation on the board is increased. Furthermore, we find that firms with women shareholders and directors have higher CSR budgeting and spending. Further analysis reveals that women shareholders are more likely to spend money on CSR activities within the budgeted amount and are less likely to be associated with gaps between CSR budgeting and spending. This analysis also shows that the type of ownership (family versus non‐family) influences women shareholders' effects on CSR budgeting and spending. Our empirical findings provide critical insights into how woman shareholders influence CSR actions.

Influencing Factors and Mechanisms of Corporate Social Responsibility Reputation under Green and Low-Carbon Transition: Evidence from Chinese Listed Companies

“…With the increasing proportion of female executives in publicly traded companies across various industries, many scholars have shifted their focus to women in corporate governance research. Regarding the impact of female executives on CSR, some research findings suggest that companies with female executives perform better in areas such as charitable donations [24]. Other studies have found that female executives lack the professional knowledge to improve enterprise innovation because they are more cautious about taking strategic risks, which suppresses innovation activities and restricts the expenditure of CSR [25].…”