The effect of cultural values on the relationship between board diversity and Corporate Social Responsibility

Abstract

This study aimed to investigate the impact of board diversity on Corporate Social Responsibility (CSR) and the moderating role of triple bottom line (TBL) dimensions in this relationship. Eight hypotheses were formulated based on relevant literature and a comprehensive analysis was conducted using six panel data regressions on a sample of 657 European firms spanning 2010 to 2019. The findings confirmed the expected positive relationship between board diversity and CSR performance, while the relationship between board diversity and CSR decoupling did not yield significant results. Moreover, the study revealed that board diversity has a more pronounced effect on CSR performance within cultures characterized by a higher degree of masculinity. Finally, the social and environmental values within a nation did not influence the effect of board diversity on CSR. This research holds theoretical significance by gaining insight on the specific board diversity aspects that impact CSR performance and highlighting the cultural context where board diversity is most effective.