Abstract
In this study, the moderating effect of board diversity on the complex relationship between corporate social responsibility (CSR) performance and financial performance is examined. The resource-based view of the firm and stakeholder theory are used as the theoretical foundation of the study. The hypotheses of the study are tested via fixed-effects regression using data for a sample of 1,234 firms and 5,102 firm-year observations for the period 2009–2013. The study finds evidence that CSR performance and financial performance are positively related, and the magnitude of this relationship is contingent on the level of board diversity. As corporate boardrooms become more diverse across several diversity attributes, the positive effect of CSR performance on financial performance becomes more profound. The study also reveals that race and age diversity constructs have a stand-alone moderating effect on this purported relationship. The study offers significant insights for practitioners regarding the potential role of a diverse board structure in effectively monitoring management actions on CSR concerns.
Keywords
board of directors, organizational performance, resource-based view
Chinese Abstract
公司社会责任和财务绩效：董事会多样性是否重要？
本研究考察了董事会多样性对企业社会责任（CSR）绩效与财务绩效之间复杂关系的调节效应。研究以公司资源基础观和利益相关者理论为理论基础。研究使用在2009年至2013年期间的1,234家公司和5,102个公司年度观察数据，通过固定效应回归进行假设检验。研究发现，企业社会责任绩效和财务绩效呈正相关关系，这种关系的强度取决于董事会多样性水平。随着公司董事会在多个多样性属性方面的增强，企业社会责任绩效对财务绩效的积极影响变得更加深远。研究还发现，种族和年龄多样性构建对这种关系具有独立的调节作用。该研究为从业者提供了有意义的启示，阐明了多元化的董事会结构在有效监督管理层的企业社会责任方面的潜在作用。
关键词：董事会、组织绩效、公司资源基础观
ORCID Identifiers
Ozgur Ozdemir: https://orcid.org/0000-0001-8734-9915
Murat Kizildag: https://orcid.org/0000-0003-0672-3851
Tarik Dogru: https://orcid.org/0000-0002-1149-0805
Ilhan Demirer : https://orcid.org/0000-0003-3370-6889
DOI
10.5038/2640-6489.6.2.1169
Recommended Citation
Ozdemir, O., Kizildag, M., Dogru, T., & Demirer, I. (2021). Corporate social responsibility and financial performance: Does board diversity matter?. Journal of Global Business Insights, 6(2), 98-116. https://www.doi.org/10.5038/2640-6489.6.2.1169
Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial 4.0 License
