Do female directors and their foreign experience complement or substitute for CSR performance? Evidence from the cost of debt financing

PurposeThe importance of board composition, especially female directors’ presence on boards, is thought to influence corporate responsibility performance, has attracted significant scholarly interest. This study aims to examine how board gender diversity (BGD) affects corporate social responsibility (CSR) performance and the moderating factors that influence the relationship. There is a lack of research on the moderating indicators (variable measurement, geographic location, data sets and gender parity score) that impact the BGD and CSR relationship.Design/methodology/approachThis study uses content analysis and meta-analysis to combine the findings of 44 selected papers published from 2010 to 2019, comprehensively reviewing the academic literature on gender diversity in the board composition. Independent and dependent variables are classified based on the variable measurement; this study examines the moderator indicators, such as geographical location, research data sets and gender parity score to investigate the BGD and CSR relationship.FindingsThe findings indicated a significant positive relationship between BGD and CSR performance. The meta-method results showed that the measurements of BGD and CSR limited to impact on the relationship. But a significant moderating effect of the geographical location on the BGD-CSR relationship, the BGD-CSR relationship would be stronger in the firms located in North America than firms located in Asia and other areas. Empirical results also showed a significant moderating effect of gender parity score. There would be stronger BGD-CSR relations in the firms located in the countries with higher gender parity score than the firms located in the countries with low gender parity score. This means the female status is an essential indicator of moderating the BGD-CSR relationship.Research limitations/implicationsThe main shortcoming is a lack of sufficient articles on the BGD-CSR relationship. In a future study, researchers may use other databases, such as Google scholar or Ebscohost, to increase the number of relevant articles. These studies would offer new insight into the meta-analysis of the relationship between the BGD and CSR. Finally, the authors identify the potential trend in future research, future research on BGD will need for standardized metrics. The Geographic location is an important indicator that will influence the female director role in CSR. A systematic measure and data of gender research are more important for study in this field.Practical implicationsMeta-analysis is conducted on the independent and dependent variables to examine the causality between BGD and CSR performance, which could better explore diversity among different countries’ boards and, more generally, to investigate the degree to which diversity may influence CSR. Firms may try to balance the BGD to improve future development prospects. Specifically, the results of this study have important implications for corporate governance and policymakers.Social implicationsFirst, this systematic study uses meta-analysis to combine the findings of previous research on the BGD-CSR. The current research attempts to incorporate mixed empirical results based on the different variable measurements. Second, this study develop and test a contingency model of female on boards and CSR that considers uses the geographic location factors that may enhance or diminish the influence of female on boards on CSR. Specifically, the authors examine whether and under what conditions, boards with more female directors differ for inter-country heterogeneity to which they engage in monitoring roles and are involved with strategy management.Originality/valueFirst, this study could be the first systematic study that uses the meta-analysis to combine previous research findings on the BGD-CSR. Second, the current research attempts to incorporate mixed empirical results based on the different variable measurements. Third, this study uses the “gender parity score” to account for inter-country heterogeneity in the BGD-CSR relationship. This study also identifies the potential trend in future research.

CSR performance and firm performance in the tourism, healthcare, and financial sectors: Do metrics and CSR committees matter?

PurposeThe purpose of this study is to examine the relationship between corporate social responsibility (CSR) practices, ISO 26000 and corporate social responsibility performance (CSRP) among Malaysian automotive suppliers.Design/methodology/approachFor this research purpose, 400 questionnaires were given simultaneously to each Proton and Perodua automotive supplier by the researcher. In all, 288 sets of questionnaire were successfully collected, which showed a 72 per cent response rate for the 400 questionnaires distributed to Proton and Perodua automotive suppliers. In this study, the structural equation modeling (SEM) technique was utilized to perform the required statistical analysis of the data survey. To test the reliability and validity of the instruments, exploratory factor analysis, reliability analysis and confirmatory factor analysis were performed.FindingsThe findings indicate that the relationship between CSR practices and CSRP was positive and significant, and the relationship between CSR practices and ISO 26000 was also positive and significant. ISO 26000 has a direct positive and significant relationship with CSRP. Therefore, ISO 26000 mediates the relationship between CSR practices and CSRP. The results indicate that ISO 26000 could be considered as a partial mediator. Therefore, the impact of implementation of CSR practices on performance increases with ISO 26000 as a mediator among Malaysian automotive suppliers.Practical implicationsThis research provides important guidelines for automotive and related companies to implement CSR practices and ISO 26000 to improve CSRP. Malaysian automotive suppliers may need to consider the measurement of CSR practices, ISO 26000 and CSRP as beneficial to their company. Based on the findings, Malaysian automotive suppliers can apply the ISO 26000 as the guideline for CSR practices to increase the CSRP.Originality/valueThis research makes a new contribution to ISO 26000 between CSR practices and CSRP, especially for Malaysian automotive suppliers, by using the SEM technique. This research provides important information for decision-makers involved in CSR practices, ISO 26000 and CSRP implementation and also provides useful reference for future researchers in this research area.

This article studies how financial investors respond to firms’ corporate social responsibility (CSR) performance in terms of their investing behaviors, and how such behaviors change contingent on an event that provokes their attention and concerns to CSR. Using the melamine contamination incident in China as a natural experiment, it is found that neither the individual investors’ nor the institutional investors’ behaviors are influenced by firms’ CSR performance before the incident. Nevertheless, in the post-event period, institutional investors’ behaviors are significantly influenced by firms’ CSR performance that exceeds a certain threshold. Furthermore, such an effect diminishes for a better CSR performance. In comparison, the authors do not find any effects of CSR performance on individual investors, either before the event or after the event. Finally, firms’ performance and investors’ behaviors jointly affect firms’ stock returns after the event but not before the event. This article reconciles the mixed findings in the literature on the effect of firms’ CSR performance on their financial performance by showing that such an effect exists in a contingent manner. Furthermore, the authors show that a too low or a too high CSR performance could lead to undesirable responses from investors. Therefore, managers should pay attention to optimizing firms’ CSR activities.

We investigate the association between corporate tax avoidance and corporate social responsibility (CSR) performance as well as the moderation effect of CSR performance consistency, using samples from South Korea. The baseline regression result suggests that there is a negative association between corporate tax avoidance and CSR performance among South Korean firms. However, as extant empirical studies find inconsistent evidence on the relationship and also the corporate culture theory suggests that the relationship could be non-monotonic and consistency is a important element to be considered in the model, we separated samples into two groups based on CSR performance, and re-examined the relationship with interaction term of CSR performance and CSR consistency as explanatory variable. Our empirical evidence suggests that tax avoidance is negatively associated with CSR performance for a high CSR performance group, whereas tax avoidance is positively associated with CSR performance for a low CSR performance group. Furthermore, our regression results indicate that a firm’s tax avoidance is negatively associated with the firm’s consistently high CSR performance, while a firm’s tax avoidance is positively associated with consistently low CSR performance.

Effects of female directors on gender diversity at lower organization levels and CSR performance: Evidence in Japan

PurposeThis study aimed to investigate the effect of sustainability committee (SC) characteristics (size, independence, the number of meetings, and expertise) on corporate social responsibility (CSR) performance in the Indian context.Design/methodology/approachThis research measures the CSR performance of 60 Indian non-financial firms listed on the Bombay Stock Exchange (BSE) over the period 2014 to 2019 using the ASSET4 environmental, social, and governance database. The authors resorted to fixed-effect panel regressions to capture the individual effect present in the data.FindingsThe results show that CSR performance is positively and significantly influenced by SC independence, size, and expertise. However, the number of SC meetings does not affect CSR performance. The results also demonstrate that CSR performance is positively and significantly associated with board independence.Research limitations/implicationsThis paper adds to the existing literature by examining the effect of SC characteristics on the firms' CSR performance in India as one of the oldest stock markets in the world, which would help test the validity of the agency and stakeholder theories in an old and big emerging market context.Practical implicationsThe findings allow managers to understand the mechanisms affecting CSR performance and how the characteristics of the SC can participate in its growth and development. Moreover, this study has implications for researchers, suggesting that future CSR studies should take into account the SC characteristics as potential determinants that explain CSR, such as CSR activities and CSR practices and strategies.Originality/valueThe present research contributes to the literature by investigating the effect of SC characteristics on the firms' CSR performance, thereby providing additional evidence on the issue. Several previous studies have examined the link between corporate governance and CSR performance with a focus on external oversight mechanisms, namely institutional ownership or analyst coverage or internal oversight mechanisms, such as board gender composition, board independence, separation of board Chairperson and CEO roles, and the existence of SC on the board, but these studies did not examine the SC characteristics. The present research fills the gap.

Purpose – This paper aims to investigate how corporate social responsibility (CSR) performance (i.e. to the environment, society and stakeholders) and perceived brand quality influence brand preference. The mediating effect of perceived brand quality on the relationship between CSR performance and brand preference is also studied. Design/methodology/approach – In 2011, 243 valid responses to questionnaire surveys were collected from a convenience sample in China. Regression analyses were used to test the hypotheses. Findings – Customers’ brand preference can be enhanced by CSR performance. Performance in each of the three CSR domains (i.e. environment, society and stakeholders) positively impacts brand preference, although to different degrees. The impact of CSR on stakeholders has the strongest influence on Chinese customers’ brand preference among the three CSR domains. Perceived brand quality was found to be a mediator of the relationship between CSR performance and brand preference. Research limitations/implications – This research studies the relationship between CSR performance and brand preference. Results show CSR performance is not the strongest predictor of branding outcomes, its explanatory power is comparatively weaker than that of perceived brand quality. Additionally, we found a mediating effect of perceived brand quality on the relationship between CSR performance and brand preference. Practical implications – Brands can be more attractive to Chinese consumers when brands take appropriate investments in CSR activities. A socially responsible brand is not guaranteed to yield a competitive advantage. Instead a competitive advantage will more likely result through the employment of the appropriate CSR strategies, with a focus on stakeholders’ interests. Originality/value – The current research contributes to the literature by finding that not all CSR activities are equally effective. Customers in emerging markets still appear to be focused more on the quality of brands and, to some extent, stakeholder CSR practice, as these provide direct benefits to customers. Findings of this study also support the notion that Chinese consumers are beginning to use CSR information to evaluate brands.

The current paper examines how gender diversity influences the corporate social responsibility (CSR) performance of French companies. Specifically, we investigate the impact of certain attributes of female directors, such as their age, education, and nationality, on CSR performance. To analyze this, we utilize the generalized method of moments (GMM) on a sample of 53 French firms listed on the SBF 120 index over the period 2008–2017. The findings reveal a positive association between the presence of women on the board and CSR performance. Furthermore, we discover that the age of female directors has a significant and positive effect on CSR performance. Additionally, the existence of a CSR committee is found to have a significant and positive influence on CSR. However, our study does not find any correlation between the education and nationality of female directors and CSR performance.

PurposeThe purpose of this paper is to investigate whether and how corporate social responsibility (CSR) performance contributes to shape firms’ payout policy. In particular, it examines the influence of CSR performance on payout level and payout channel choice (dividend payment or share repurchases). Additionally, it examines the moderating role of CSR performance in the relationship between dividends and share repurchases.Design/methodology/approachUsing 397 European companies listed in the STOXX Europe 600 over the period from 2009 to 2014, the authors employ regression analysis to explore the link between CSR performance and payout policy.FindingsThe first result shows that firms with high CSR performance engage more in payout policy. Second, when choosing between paying dividends and repurchasing stocks, firms with high CSR performance tend to prefer share repurchases. Finally, CSR performance plays an important role in determining the relationship between dividends and repurchases. Specifically, dividends and share repurchases seem to be more substitutable among socially responsible firms.Practical implicationsFirms that are able to develop successful CSR strategies can generate tangible benefits for their shareholders in the form of high payout levels. An increase in CSR expenditure does not lead to cut or minimize the cash flow paid out to shareholders. In addition, government and regulators have to oblige or at least encourage socially responsible firms to use executive stock option that are dividend protected, in order to reduce distortions in dividend policy.Originality/valueThis is the first attempt to investigate the association between CSR performance and share repurchase activities.

PurposeThis paper aims to examine the impact of three key factors — corporate social responsibility (CSR) awareness, CSR affordability and CSR management system (CSRMS) sophistication—on the CSR performance of Japanese firms.Design/methodology/approachUsing responses to 36 items developed on the Global CSR standard of ISO26000, two CSR indexes were constructed to assess the CSR management system sophistication and performance of Japanese firms. The relationship between the three key variables (CSR awareness, affordability and management system sophistication) and CSR performance was then examined through a partial least squares (PLS)-based structural equation model. Data were collected through a questionnaire survey of 146 firms.FindingsThe results of the study found a positive relationship between CSR performance and three exogenous variables (CSR awareness, affordability and management system sophistication). Furthermore, the study found that CSRMS sophistication played a mediating role in the relationship between CSR performance and firms' CSR awareness and affordability.Research limitations/implicationsThe study was limited to examining the CSR practices of a major province in Japan, which may hinder the generalisation of the findings to the rest of the country. Moreover, the data used for assessing the variables in this study were self-reported by the participating firms, in addition to being cross-sectional. The findings of this study clarified areas that policymakers, including Japan's business associations–Keidanren and Keizai Doyukai, and other relevant parties need to focus on for further improving CSR performances of Japanese firms.Originality/valueThis study highlights the role CSR awareness, affordability and CSRMS sophistication play in improving CSR performance. On the one hand, it identifies the critical role CSRMS plays in mediating the relationship among CSR performance, awareness and affordability. On the other hand, it advances CSR theory providing insight for practitioners to generate positive CSR outcomes.

This study, grounded in the principles of the upper echelons theory, aims to assess how the socio-demographic attributes of chief executive officers (CEOs) and the legal systems of their operating countries impact corporate social responsibility (CSR) and corporate performance. In addition, this study seeks to establish a profile of CEO attributes associated with high CSR performance among the world’s best-performing corporations. The empirical analysis is based on a 5-year dataset sample of the top 100 CEOs globally, provided by Harvard Business Review for the years 2015 to 2019. The examined attributes include age, gender, tenure, engineering degree, MBA study, employment type and the legal system of the country where the CEO is operating, all in relation to CSR and corporate performance. Our empirical analysis indicates that CEOs’ age, gender and tenure positively influence CSR and corporate performance. The average CEO age is 60 years, with the majority being male and having a significant tenure ranging from 12 to 15 years. Furthermore, the analysis suggests that engineering and MBA studies do not substantially influence CSR and corporate performance. Insider CEOs also show a positive impact on CSR and corporate performance. The prevalent legal system, according to our analysis, is the common law, with the United States having the highest representation. Moreover, based on our further analysis, a suggested profile of CEOs’ attributes includes internally appointed male CEOs in their early sixties who do not necessarily hold an engineering or MBA degree. The distinctive aspect of this study lies in its multi-attribute approach and the offering of a CEO profile associated with high CSR and corporate performance. This approach opens avenues for future CSR research and exploration.

With a stronghold in the institutional theory of corporate social responsibility (CSR), a hypothesis is made on banks’ CSR performance being positively driven with the contextual factors, i.e., countries’ macroeconomic and institutional development and their banking sectors’ development (briefly country development level). Development banks, rather than commercial banks, are at the center of the empirical evidence, mainly because they are perceived to be socially responsible institutions by their definition, as well as the best in class example for commercial banks’ CSR practices in certain country. CSR performance is measured throughout CSR reporting quantity and reporting form following Global Reporting Initiative’s (GRI) Sustainability Reporting Guidelines. By combining the aforementioned data and the World Bank’s data for 22 European countries in 2013 out of which 15 are Balkan and Eastern European countries and the rest Western European countries, we find out that GDP per capita, research, and development expenditure over GDP, gross savings over GDP, and employment of total labor force are positively related to development banks’ CSR performance, while banking sector variables (net interest margin and regulatory capital to risk-weighted assets) are negatively related to development banks’ CSR. Countries’ institutional development variables are also connected to development banks’ CSR performance, but with rather slight differences between better and lower performing development banks with regard to CSR. Thus, more developed economic systems as well as less profitable banking systems, which have lower level of regulatory burden have higher performance of development banks’ CSR when K-means clustering approach was adopted. An important caveat of the research is that there is a trade-off between cost of banking intermediation and development banks’ CSR performance, while macroeconomic performance and CSR performance are in complementary relationship. Altogether, a conclusion is made that banks’ CSR performance is rather modestly explained by the country development level in the previous empirical works and thus a more general approach when researching and creating public policies about the CSR phenomenon is required.

This study examines the nexus between board gender diversity (BGD), corporate social responsibility (CSR) performance, and financial outcomes in the context of an emerging country, Türkiye. The sample consists of Turkish non‐financial firms listed on Borsa Istanbul for the period 2008–2023. The findings indicate that BGD plays a significant positive role in improving CSR performance. Furthermore, BGD does not moderate the CSR‐accounting performance link but positively moderates the relationship between CSR and market‐based performance. This study extends the literature, testing the associations between BGD, CSR, and financial performance in an institutional context characterized by a soft regulatory framework for BGD. The results provide a business case justification for promoting gender‐diverse boards, as greater female representation enhances CSR performance and strengthens the market valuation of CSR initiatives. Accordingly, policymakers are encouraged to implement measures that foster BGD, given its potential to enhance firms' CSR engagement and support national sustainability goals.

PurposeThis study aims to explore the set of corporate social responsibility (CSR) committee attributes that may enhance CSR performance and CSR strategy formation and reduce CSR controversies.[AQ1] Towards this end, the study also explores the differences between companies with and without CSR committees in terms of these three CSR performance facets.Design/methodology/approachThe study uses a sample of financial times stock exchange (FTSE) 100 non-financial companies in 2015–2017. Kruskal-Wallis test is conducted to test the differences in CSR performance in firms with CSR board-level committee, CSR management committee and no committees. Additionally, a regression model is used to explore the attributes of CSR committees that lead to better/less CSR performance and CSR strategy/CSR controversies. A two-stage least squares regression model was used as a robustness check.FindingsFirms with board CSR committee have better CSR performance and CSR strategy and lower CSR controversies than both firms with no CSR committees and firms with a CSR management committee. Regression results show that CSR committees that are predominantly consisting of independent board members, chaired by a female director and setting more meetings have better CSR performance. Additionally, CSR committees were found to have lower CSR controversies when having more independent directors and a chair with CSR expertise. CSR strategy was better with the CSR committee represented by a larger group of members.Originality/valueThis study makes several contributions to the sustainability governance literature and regulatory/guidance interfaces. There is extant literature examining audit committee attributes and their effects on various firm outcomes. The same can be said on the regulations of the audit committee. CSR committees’ composition and benefits are, by far, less regulated and largely under-researched. Hence, this paper is considered an early attempt to explore the CSR performance improvements a CSR committee may bring and the composition that would bring better CSR performance.