Top management team heterogeneity and corporate social responsibility performance
This research investigates the relationship between top management team (TMT) heterogeneity and corporate social responsibility (CSR). Specifically, TMT educational heterogeneity, TMT tenure heterogeneity, and TMT gender heterogeneity. Based on the Upper-Echelon theory, this research argues that CSR performance is affected by the decisions of the TMT. This study investigates this relationship using a sample of European listed firms included in the Refinitiv Eikon database combined with data on TMT members collected from BoardEx. Using Blau’s index for heterogeneity, TMT heterogeneity is calculated. The results show a negative relationship between TMT educational and gender heterogeneity on CSR performance, and a positive relationship between TMT tenure heterogeneity on CSR performance. This study reduces the gap in the literature by providing useful insights on the effects of TMT heterogeneities on CSR performance. The findings can help shareholders decide on the composition of their TMT to increase CSR performance. Previous studies have investigated how TMT characteristics influence firm performance. However, studies investigating how TMT characteristics influence CSR performance are limited.
Faculteit der Managementwetenschappen