CSR-focused director networks, family control and CSR performance: Evidence from India

Abstract

We theorize about the proactive role of CSR-focused director networks (a network where a firm’s directors are linked to other firms with superior levels of CSR engagement) in communicating CSR (importantly including significant environmental CSR) enthusiasm and expertise among a sample of the largest Indian firms over the 2006-2012 period. We find that these networks are significantly associated with higher levels of CSR engagement in the focal firms. We also theorize and find support for the idea that this effect is higher in family controlled firms, who might reasonably be expected to value CSR more highly because CSR is a source of socio-emotional wealth for the controlling family, and thus be more receptive to and utilize CSR- networked directors recommendations and expertise. We utilize both utilized null hypothesis significance testing as well as Bayesian testing to provide evidence for our hypotheses. (141 words) Keywords: CSR, director networks, India, family business